Update shared on 25 Nov 2025
Fair value Increased 3.75%Analysts have recently raised their price targets for Johnson Matthey, increasing the fair value estimate from £20.29 to £21.05. They cite improved profit margins and updated outlooks reflected in recent research commentary.
Analyst Commentary
Recent updates from Street research reflect shifts in analysts' price targets and sentiment toward Johnson Matthey. The following summarizes key positive factors and areas of caution highlighted in the latest research notes.
Bullish Takeaways- Bullish analysts have raised their price targets, citing increased confidence in Johnson Matthey's ability to improve operating margins and drive higher profitability.
- Upward revisions in valuation targets indicate optimism about the company's near-term outlook and execution on strategic initiatives.
- Analysts point to strengthened fundamentals, with improvements in cost management and revenue generation expected to support higher share prices.
- The maintenance of neutral or hold ratings alongside price target increases suggests analysts see a stable risk profile with room for upside if performance exceeds expectations.
- Despite higher price targets, some analysts remain cautious, indicating that further growth may be contingent on the company's ability to deliver consistent operational performance.
- Ongoing hold or neutral ratings signal that risks, such as sector volatility or execution challenges, remain present and could limit near-term gains.
- Valuation concerns persist, with some analysts suggesting the current share price already reflects expected improvements, reducing the margin for error if results fall short.
- Cautious analysts emphasize the need for Johnson Matthey to sustain recent momentum to justify elevated price targets over the longer term.
What's in the News
- Alastair Judge will be appointed as Chief Financial Officer effective 1 January 2026. Richard Pike will transition to Chief Operating Officer, and the Group Leadership team will be reduced from nine to six members to support a more focused business structure (Key Developments).
- Johnson Matthey has provided earnings guidance for the year ending 31 March 2026, expecting underlying operating profit growth at the higher end of a mid single digit percentage range, despite challenging macroeconomic conditions (Key Developments).
Valuation Changes
- Fair Value Estimate has risen slightly from £20.29 to £21.05.
- Discount Rate has decreased marginally from 8.53% to 8.52%.
- Revenue Growth projection has declined further, moving from -37.85% to -38.91%.
- Net Profit Margin has improved, increasing from 8.35% to 9.10%.
- Future P/E ratio has climbed notably from 14.85x to 18.69x.
Disclaimer
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