Update shared on 18 Nov 2025
Fair value Decreased 0.44%Croda International's analyst price target has seen a modest upward revision to 3,150 GBp from 3,000 GBp. This reflects analysts' view that recent sector updates and firm-specific catalysts support a slightly higher fair value for the shares.
Analyst Commentary
Recent research updates on Croda International have highlighted a mix of optimism and caution. Analyst revisions reflect shifting perspectives on the company's valuation and prospects, resulting in both upward and downward adjustments to target prices. The following summarizes key bullish and bearish takeaways from recent reports.
Bullish Takeaways- Bullish analysts have raised their price targets, citing recent sector developments and specific catalysts that could positively impact Croda’s share price.
- The potential for activist involvement is viewed as a positive catalyst that could drive operational improvements or strategic changes.
- Some see concerns over commoditization as likely overstated. This suggests Croda’s market positioning remains strong enough to support margins and long-term growth.
- Despite a reduction in target prices by a few, several analysts continue to maintain Buy or Overweight ratings. This highlights continued confidence in Croda’s execution and future outlook.
- Bearish analysts have lowered their price targets, signaling caution about near-term valuation amid sector volatility.
- Neutral ratings underscore a measured view that, while the company has strengths, further conviction is limited without more decisive progress on growth or profitability.
- Lowered expectations on pricing power and market dynamics suggest some lingering uncertainties in the company's growth trajectory.
- Some highlight that competitive challenges and potential margin pressure could limit the speed of any recovery in valuation.
What's in the News
- Croda International provided earnings guidance for the fourth quarter and full year of 2025, indicating that absolute sales in quarter 4 are likely to be seasonally lower as customers manage working capital into the year-end. (Key Developments)
- Despite an anticipated seasonal sales decline, the company expects continued good sales growth year-to-date and cost savings to support group adjusted profit before tax of GBP 265 million to GBP 295 million at constant currency. (Key Developments)
- Croda reiterated its full year guidance for fiscal 2025. (Key Developments)
Valuation Changes
- Fair Value per Share has edged down marginally, decreasing from £34.62 to £34.46.
- Discount Rate has risen slightly, increasing from 7.71% to 7.89%.
- Revenue Growth expectations have decreased fractionally, moving from 4.78% to 4.76%.
- Net Profit Margin has improved slightly, rising from 13.05% to 13.06%.
- Future P/E Ratio is essentially unchanged, moving from 24.18x to 24.19x.
Disclaimer
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