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CARD: Share Buyback And Dividend Policy Will Support Future Upside Potential

Digital Channels And Personalized Gifting Will Drive Long-Term Expansion

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CARD
AnalystHighTarget
Not Invested
Published 30 Jul 2025

Update shared on 13 Dec 2025

Fair value Decreased 14%
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AnalystHighTarget's Fair Value
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1Y
-30.7%
7D
-28.2%

Analysts have trimmed their price target on Card Factory from £2.15 to £1.85, citing a higher required discount rate and slightly lower margin expectations, despite upgraded revenue growth forecasts.

What's in the News

  • The board has authorized a share buyback plan for Card Factory plc, signaling confidence in the company’s valuation (Key Developments).
  • Card Factory has launched a share repurchase program, valid until January 31, 2026, covering its 351,595,922 ordinary shares in issue as of October 30, 2025 (Key Developments).
  • The board has proposed an interim dividend of 1.3 pence per share for the half year ended July 31, 2025, representing a 4.9% increase on the prior year, payable on December 12, 2025 to shareholders on the register on November 7, 2025 (Key Developments).

Valuation Changes

  • Consensus Analyst Price Target has fallen from £2.15 to £1.85, a reduction of roughly 14%.
  • Discount Rate has risen significantly from 9.82% to 11.56%, reflecting a higher perceived risk profile.
  • Revenue Growth assumptions have increased slightly from about 8.11% to 9.30% per year.
  • Net Profit Margin expectations have edged down from around 9.34% to 8.72%.
  • Future P/E multiple has been cut from approximately 15.9x to 14.2x, implying a lower valuation relative to forecast earnings.

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