Update shared on03 Oct 2025
Fair value Increased 3.50%The analyst consensus price target for Admiral Group has increased from £34.83 to £36.05 per share. This reflects improved optimism among analysts, who cite a stronger growth outlook, raised valuations, and stabilization in the UK motor market as key factors in their revisions.
Analyst Commentary
Recent research updates have resulted in both upgrades and downgrades for Admiral Group, with several analysts raising their price targets and adjusting their outlooks based on evolving market dynamics and company fundamentals.
Bullish Takeaways
- Bullish analysts describe Admiral Group as a growth compounder, pointing to its consistent ability to scale and generate profitability despite challenging market conditions.
- Improved pricing in the UK motor market and industry consolidation are seen as positive trends. These factors support the company's future growth outlook.
- The company's current valuation is considered attractive by several analysts, who believe the shares are trading at a depressed level relative to underlying potential.
- Multiple upward revisions in price targets reflect growing confidence in Admiral Group's ability to deliver sustained returns and navigate market volatility effectively.
Bearish Takeaways
- Bearish analysts have tempered their expectations, citing concerns that falling motor insurance rates in the United Kingdom could weigh on earnings momentum in the coming quarters.
- Some note that positive news flow for Admiral Group may diminish if pricing pressure intensifies. This could potentially lead to more subdued performance compared to recent highs.
- The company’s shares have also seen downgrades in rating, reflecting a more balanced risk-reward profile at current price levels despite ongoing price target increases.
Valuation Changes
- Consensus Analyst Price Target has increased from £34.83 to £36.05 per share. This reflects a modest rise in fair value estimates.
- Discount Rate remains unchanged at 6.82 percent. This indicates stable risk and return assumptions in updated calculations.
- Revenue Growth forecasts have decreased slightly, from 3.40 percent to 3.21 percent, suggesting a more conservative outlook on top-line expansion.
- Net Profit Margin projections edged down marginally from 13.41 percent to 13.36 percent.
- Future P/E ratio has risen from 17.26x to 18.02x, showing a higher earnings multiple being assigned by analysts.
Disclaimer
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