Update shared on05 Sep 2025
Analysts maintained a positive outlook on Hill & Smith, citing share buybacks, balance sheet strength, and sustained earnings momentum as key drivers, with the consensus price target unchanged at £24.09.
Analyst Commentary
- Bullish analysts cite the GBP 100M buyback as providing a meaningful return of capital to shareholders.
- Upward price target revisions reflect increased confidence in balance sheet strength and capital deployment.
- Recent positive outlooks are underpinned by continued buy ratings, implying conviction in sustained earnings momentum.
- Temporary downward revision in June was attributed to caution around first half 2025 earnings and focus on balance sheet utilization.
- Subsequent target increases suggest expectations for improved operating performance and clearer capital allocation strategy.
What's in the News
- Board approved a share buyback plan.
- Announced a share repurchase program of up to £100 million with shares to be cancelled, valid until March 31, 2027.
- Reaffirmed full-year 2025 earnings guidance and positive outlook; underlying operating profit expected to meet market expectations.
- Increased interim dividend to 18.0 pence per share, up 9%.
Valuation Changes
Summary of Valuation Changes for Hill & Smith
- The Consensus Analyst Price Target remained effectively unchanged, at £24.09.
- The Discount Rate for Hill & Smith remained effectively unchanged, moving only marginally from 7.55% to 7.57%.
- The Future P/E for Hill & Smith remained effectively unchanged, moving only marginally from 20.56x to 20.57x.
Disclaimer
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