Update shared on 23 Nov 2025
Fair value Decreased 1.65%Ibstock's analyst fair value price target has been modestly reduced from £1.64 to £1.61. Analysts cite softer end market conditions and delays in new build planning as key factors behind the adjustment.
Analyst Commentary
Recent updates from street research provide insight into how analysts are adjusting their outlook on Ibstock amid changing market dynamics. Several have lowered their price targets and adopted a more cautious stance, pointing to both challenges and opportunities for the company moving forward.
Bullish Takeaways
- Some analysts continue to recognize Ibstock's stable market position in its core segments, which suggests underlying business resilience despite sector headwinds.
- The company’s exposure to potential improvements in new build planning could support future growth if conditions stabilize or improve.
- Current valuation adjustments may create opportunities for long-term investors if the company's execution aligns with a recovery in end markets.
Bearish Takeaways
- Several analysts have adopted more neutral ratings, reflecting concerns about weak near-term demand and limited visibility into the timing of a market recovery.
- Ongoing delays in new build planning are seen as a drag on Ibstock's near-term growth prospects, which is weighing on forecasts and sentiment.
- The pattern of lowered price targets suggests that analysts are factoring in softer end market conditions, which could constrain earnings growth and upside potential in the immediate future.
- The lack of additional supportive catalysts in the short term means the company's shares could remain subdued until clearer signs of sector recovery emerge.
What's in the News
- Simon Bedford has been appointed Interim CFO at Ibstock, following Chris McLeish's decision to leave the business in October 2025. Simon previously served as Group Financial Controller and joined Ibstock in June 2020 after nearly two decades at Rolls Royce plc. (Key Developments)
Valuation Changes
- Fair Value Price Target has decreased slightly from £1.64 to £1.61, reflecting adjustments for current market conditions.
- Discount Rate has risen marginally from 9.07% to 9.08%. This indicates a small increase in perceived risk or cost of capital.
- Revenue Growth projection remains essentially unchanged and is holding steady at approximately 6.81%.
- Net Profit Margin estimate is stable, moving negligibly from 9.52% to 9.52%.
- Future P/E Ratio has fallen moderately from 18.95x to 18.64x. This suggests slightly lower earnings expectations for the company.
Disclaimer
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