Update shared on 02 Dec 2025
Fair value Decreased 11%Analysts have lowered their price target for Auction Technology Group to £6.90 from £7.10. They cite slower expected revenue growth and a higher discount rate as key factors for the adjustment.
Analyst Commentary
Recent analyst attention has focused on the recalibration of expectations for Auction Technology Group, given updated forecasts and changing market conditions.
Bullish Takeaways
- Bullish analysts continue to assign an Overweight rating and cite confidence in long-term strategy and business fundamentals.
- Valuation remains appealing compared to sector peers, even with the recent price target adjustment.
- Growth potential in digital auction markets is identified as a key driver for future revenue expansion.
Bearish Takeaways
- Bearish analysts note a more cautious outlook on near-term revenue growth, which has contributed to a lower price target.
- The updated discount rate reflects increased risk perceptions and higher hurdle rates for growth stocks in the current environment.
- Potential execution challenges and market uncertainty could affect the delivery on growth forecasts.
What's in the News
- Auction Technology Group provided earnings guidance for the full year 2026, forecasting 4% to 5% revenue growth at constant currency and pro forma for a full year of Chairish. This equates to 28% to 29% growth when including the additional 10 months of Chairish (Key Developments).
- The company expects revenue growth to be more heavily weighted to the first half of the year due to the importance of shipping to the top line (Key Developments).
- Auction Technology Group was dropped from the FTSE 250 Index (Key Developments).
- The company was also removed from the FTSE 350 Index as well as the FTSE 250 (Ex Investment Companies) and FTSE 350 (Ex Investment Companies) Indices (Key Developments).
Valuation Changes
- Fair Value: Lowered from £5.97 to £5.31, reflecting a more conservative outlook.
- Discount Rate: Increased from 7.63% to 8.07%, which indicates higher perceived risk and required return.
- Revenue Growth: Reduced from 17.62% to 13.55%, suggesting more modest growth expectations.
- Net Profit Margin: Improved from 5.86% to 9.75%, which highlights increased profitability projections.
- Future P/E: Decreased significantly from 70.4x to 38.1x, pointing to a lower valuation multiple on future earnings.
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