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RNK Will Benefit From Index Inclusion Despite Moderately Higher Cost Pressures

Update shared on 12 Dec 2025

Fair value Decreased 9.64%
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AnalystConsensusTarget's Fair Value
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1Y
23.4%
7D
-3.7%

Analysts have trimmed their price target on Rank Group from approximately £1.82 to about £1.64, reflecting slightly softer expectations for revenue growth and profit margins alongside a modestly higher assumed cost of capital.

What's in the News

  • Issued earnings guidance for 2026, stating the year has started strongly and that like for like operating profit is expected to be in line with market expectations despite higher employer national insurance, national living wage and new statutory levy costs (company guidance)
  • Added to the S&P Global BMI Index, broadening the company’s visibility among global equity investors and passive index trackers (index announcement)

Valuation Changes

  • Fair Value: reduced modestly from approximately £1.82 to about £1.64 per share, reflecting more cautious assumptions.
  • Discount Rate: edged up slightly from around 9.69 percent to about 9.77 percent, which implies a marginally higher perceived risk or cost of capital.
  • Revenue Growth: trimmed slightly from roughly 7.48 percent to about 7.17 percent per year over the forecast horizon.
  • Net Profit Margin: lowered moderately from around 7.63 percent to about 7.16 percent, which signals a softer profitability outlook.
  • Future P/E: eased slightly from about 14.87 times to roughly 14.42 times expected earnings, which indicates a marginally reduced valuation multiple.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.