ITH: Incremental Changes In Discount Rate Will Limit Share Upside

Analysts have modestly revised their price target for Ithaca Energy, adjusting the fair value estimate from £1.73 to £1.73 per share. They cite incremental changes in the company’s discount rate and future P/E outlook as underlying factors for the update.

Analysts have raised their price target for Ithaca Energy from £1.60 to £1.73 per share. They cite improved revenue growth projections and a stronger profit margin outlook as the reasons for this adjustment.

Despite a sharp downgrade in revenue growth expectations, Ithaca Energy’s future P/E has dropped substantially, improving valuation and likely driving the consensus price target up from £1.54 to £1.61. What's in the News Upgraded FY2025 production guidance to 119–125 kboe/d from prior 109–119 kboe/d, reflecting strong core asset performance.

AnalystConsensusTarget has increased profit margin from 3.7% to 4.1% and increased shares outstanding growth rate from -0.0% to 0.1%.

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget has increased revenue growth from 6.6% to 13.3%, decreased profit margin from 4.3% to 3.7%, decreased future PE multiple from 42.1x to 37.8x, increased discount rate from 7.0% to 8.5% and decreased shares outstanding growth rate from 0.1% to -0.0%.