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FORT: Revenue Stability And Margin Improvement Will Support A Fair Outlook

Rising Regulations And Shifting Construction Trends Will Weigh On Performance

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FORT
AnalystLowTarget
Not Invested
Published 04 Aug 2025

Update shared on 12 Dec 2025

Fair value Increased 13%
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AnalystLowTarget's Fair Value
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1Y
6.6%
7D
1.9%

Analysts have nudged their price target on Forterra higher to 1.92, up from 1.70, citing improved expectations for revenue growth and profit margins that more than offset a slightly higher discount rate and modestly lower future P/E assumptions.

What's in the News

  • Forterra plc issued earnings guidance for the second half, indicating revenues are expected to remain broadly in line with first half levels (company guidance).
  • The reiterated revenue outlook suggests management anticipates stable demand conditions in its core markets through the remainder of the year (company guidance).
  • Confirmation of similar H2 revenues to H1 may signal limited near term growth but improved visibility for investors monitoring cash flow and margin trends (company guidance).

Valuation Changes

  • The fair value estimate has risen moderately from £1.70 to £1.92 per share, reflecting higher projected earnings.
  • The discount rate has increased slightly from 8.07 percent to 8.77 percent, implying a marginally higher risk or required return assumption.
  • Revenue growth expectations have risen meaningfully from about 2.9 percent to 4.5 percent, indicating a stronger anticipated top line trajectory.
  • The net profit margin forecast has improved from roughly 7.7 percent to 8.8 percent, pointing to better expected operating efficiency and profitability.
  • The future P/E multiple has edged down from about 14.5x to 13.8x, suggesting a modestly more conservative valuation on future earnings.

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Disclaimer

AnalystLowTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystLowTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystLowTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.