Update shared on03 Oct 2025
Fair value Decreased 1.86%Analysts have revised Croda International's price target downward from £36.00 to £31.00, citing shifts in fair value and an improving revenue growth outlook. Ongoing activist pressures are seen as a potential positive for shares despite persistent margin concerns.
Analyst Commentary
Bullish Takeaways- Bullish analysts believe the current concerns around product commoditization may be overstated. This could result in undervaluation of Croda International shares.
- Recent activist engagement is viewed as a probable catalyst for accelerating shareholder value and prompting strategic changes.
- Upgrades in recommendation suggest that the market may be underestimating the company's ability to achieve improved revenue growth.
- The revised, though lower, price target reflects ongoing confidence in Croda’s long-term prospects despite short-term uncertainties.
- Bearish analysts maintain caution due to persistent margin pressures that could hamper near-term earnings performance.
- Lowered fair value estimates indicate some skepticism regarding the speed and success of any strategic turnaround.
- There remain concerns that commoditization trends could limit pricing power and weigh on profitability moving forward.
What's in the News
- Croda International seeks small, technology-led bolt-on acquisitions with a priority on capital discipline, faster cash payback, and maintaining net debt within the company’s stated range (Key Developments).
- The company remains committed to growing its dividend and returning surplus cash to shareholders over time (Key Developments).
- An interim dividend of 48.0 pence per share, totaling £67.0 million, has been declared and is due for payment on 7 October 2025 to shareholders on record as of 29 August 2025 (Key Developments).
Valuation Changes
- Fair Value: Decreased modestly from £35.23 to £34.58, reflecting updated market assumptions.
- Discount Rate: Edged lower, moving from 7.85% to 7.79%.
- Revenue Growth: Improved slightly, rising from 5.06% to 5.27%.
- Net Profit Margin: Declined marginally from 13.23% to 13.04%.
- Future P/E: Fell slightly from 24.18x to 23.89x.
Disclaimer
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