Hilton Food Group’s analyst fair value estimate has been revised downward by £0.50 to £7.65, as analysts cite ongoing reductions in price targets following recent reassessments of revenue growth and profit margins.
Analyst Commentary
Recent street research presents a mixed view on Hilton Food Group, with both supportive and cautious stances reflected in the latest analyst activity.
Bullish Takeaways- Bullish analysts continue to maintain Buy or positive ratings, suggesting underlying confidence in Hilton Food Group's long-term fundamentals, even as short-term valuation adjustments occur.
- Some targets, though slightly reduced, still remain well above current trading levels. This may indicate room for potential upside if operational improvements take place.
- Positive sentiment persists regarding Hilton Food Group’s execution capabilities and its ability to adapt to changing market conditions.
- Ongoing support from the analyst community underscores the company’s resilience in the face of sector-wide headwinds.
- Bearish analysts have notably lowered price targets, reflecting concerns about the sustainability of profit margins and slowing revenue growth.
- Recent changes include rating downgrades, which highlight apprehension over near-term execution risks and sector pressures.
- The extent and frequency of target reductions suggest a cautious market outlook regarding valuation and future earnings potential.
- Uncertainty around demand trends and cost inflation is prompting a more guarded stance on the stock’s growth trajectory.
What's in the News
- Steve Murrells will step down as Chief Executive Officer effective 25 November 2025. Mark Allen, currently Non-Executive Chair, has been appointed as Executive Chair and will lead the business during the CEO succession process (Key Developments).
- Hilton Food Group’s Board has approved an interim dividend increase to 10.1 pence per share, up from 9.6p. The dividend will be payable on 28 November 2025 to shareholders registered by 31 October 2025 (Key Developments).
Valuation Changes
- Fair Value Estimate has decreased by £0.50 to £7.65, reflecting a moderate revision downward.
- Discount Rate has risen slightly from 7.07% to approximately 7.28%. This indicates a marginally higher risk assessment in discounted cash flow models.
- Revenue Growth assumptions have edged up from 1.92% to 1.94%. This represents a minor improvement in future sales expectations.
- Net Profit Margin projections have dipped fractionally from 1.12% to 1.11%. This suggests a slightly less optimistic outlook for profitability.
- Future P/E Ratio has fallen from 18.42x to 17.39x. This implies a reduced valuation multiple for forward earnings.
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