Update shared on 24 Oct 2025
Fair value Increased 1.09%NEXT Analyst Price Target Rises Amid Cautious Optimism
Analysts have increased NEXT’s price target from £128.16 to £129.56 per share. This adjustment reflects cautious optimism driven by improved sentiment and recent research updates, despite minor downward adjustments to revenue growth and profit margin expectations.
Analyst Commentary
Bullish Takeaways
- Bullish analysts have raised their price targets, signaling increased confidence in NEXT’s valuation prospects.
- Recent upward adjustments suggest that the company’s latest performance and forward guidance are being received positively by the market.
- Improved sentiment is attributed to NEXT’s ability to adapt to shifting consumer trends and maintain operational resilience.
- Anticipated steady revenue streams as well as disciplined execution support the higher share price expectations.
Bearish Takeaways
- Some analysts continue to maintain a cautious stance, indicated by Hold ratings despite the raised price target.
- There remain concerns about the sustainability of profit margins as market dynamics evolve.
- Moderate adjustments to revenue growth forecasts reflect ongoing uncertainties in the retail environment.
- Cautious analysts highlight that valuation gains may be limited unless NEXT demonstrates consistent execution and margin improvement over time.
What's in the News
- NEXT plc announced an interim ordinary dividend of 87 pence per share for the year to January 2026, with a total value of around £99 million. The dividend will be paid on 5 January 2026. Shares will trade ex-dividend from 4 December 2025, with a record date of 5 December 2025. (Key Developments)
- NEXT plc commenced a share buyback program on 11 August 2025, permitting the repurchase of up to 18,467,000 shares, representing nearly 15% of issued share capital, following shareholder approval at the May 2025 AGM. The program will end at the 2026 AGM or on 15 August 2026, whichever comes first. Repurchased shares will be cancelled. (Key Developments)
- The company raised its earnings guidance for the full year 2025/2026, now expecting total group sales of £6.72 billion, up from previous guidance of £6.63 billion. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has risen slightly from £128.16 to £129.56 per share.
- The Discount Rate has declined modestly from 8.90% to 8.75%.
- Revenue Growth expectation has fallen from 5.92% to 5.47%.
- Net Profit Margin forecast has decreased from 12.63% to 12.40%.
- The Future P/E ratio has increased from 19.10x to 20.94x.
Disclaimer
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