Update shared on11 Oct 2025
Fair value Decreased 5.62%Ibstock Analyst Price Target Revised Downward
The analyst price target for Ibstock has been reduced from £2.00 to £1.70 per share. Analysts cite expectations of slightly lower revenue growth and profit margins as key factors in the adjustment.
Analyst Commentary
Bullish Takeaways
- Bullish analysts note that the reduction in price target remains above current share prices. This may suggest the shares are still seen as fairly valued in the medium term.
- Some see the company's stable business fundamentals as supportive of the Hold rating, despite short-term headwinds.
- Analysts highlight potential for recovery in profit margins as market conditions improve and cost pressures ease.
Bearish Takeaways
- Bearish analysts are concerned about ongoing challenges to revenue growth, which prompted the downward adjustment in price target.
- There is caution regarding the pace of margin improvement because the near-term outlook reflects pressure from input costs and soft demand.
- The reaffirmed Hold rating signals hesitance to recommend buying until there is clearer evidence of operating leverage or improved market dynamics.
What's in the News
- Simon Bedford has been appointed as Interim CFO following Chris McLeish's decision to leave the business in October 2025 (Key Developments)
- Simon Bedford is currently the Group Financial Controller and has previously held senior finance roles at Rolls Royce plc (Key Developments)
- Ibstock plc issued earnings guidance for the second half of 2025, expecting growth in sales volumes compared to the prior year period while remaining cautious about macroeconomic risks (Key Developments)
Valuation Changes
- The Fair Value Estimate has decreased from £1.92 to £1.82 per share, reflecting a moderation in long-term expectations.
- The Discount Rate has risen slightly from 8.36% to 8.74%, indicating that a higher risk premium is now applied in valuation models.
- The Revenue Growth Forecast has declined modestly from 8.44% to 8.26% per year, suggesting a tempered outlook for business expansion.
- The Net Profit Margin Estimate has fallen from 10.73% to 10.38%, reflecting slightly lower anticipated profitability levels.
- The Future P/E Ratio has edged down from 18.53x to 18.31x, indicating a marginally lower valuation on forward earnings.
Disclaimer
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