Update shared on 07 Nov 2025
Fair value Increased 7.00%The analyst price target for NEXT has increased from £129.56 to £138.64. This reflects improved revenue growth and profit margin forecasts, supported by multiple recent upward price target revisions from analysts.
Analyst Commentary
Recent analyst updates show a positive shift in sentiment surrounding NEXT, marked by several upward price target revisions and constructive ratings. Below is a summary of the principal takeaways from recent Street research.
Bullish Takeaways
- Multiple bullish analysts have raised their price targets for NEXT, noting the company's strong revenue growth prospects and improved margin outlook.
- Upward revisions to price targets indicate growing confidence in the company's management execution and long-term strategy.
- There is a consensus that NEXT's market positioning enables it to capitalize on evolving consumer trends. This is viewed as supporting both sales growth and profitability improvements.
- The reiteration of positive ratings by major institutions highlights broader optimism regarding NEXT's competitive advantage and ability to drive shareholder value.
Bearish Takeaways
- Some bearish analysts remain cautious and have maintained Neutral or Hold ratings despite the improved outlook. This reflects concerns over valuation sensitivity after recent share price appreciation.
- Potential execution risks are noted, particularly in sustaining momentum and capturing forecasted margin gains in the context of fluctuating consumer demand.
- Uncertainties around macroeconomic factors and their impact on discretionary retail spending also temper the overall optimism in the analyst community.
What's in the News
- NEXT plc has raised its earnings guidance for the full year 2025/2026. The company now expects Total Group sales of £6,870 million compared to the previous guidance of £6,720 million. (Company announcement)
- The company announced a planned special dividend of approximately £3.10 per share to be paid at the end of January 2026, contingent on there being no acquisitions or further buybacks. (Company announcement)
- NEXT will declare an interim ordinary dividend of 87 pence per share for the year to January 2026, with shares trading ex-dividend from 4 December 2025 and payment scheduled for 5 January 2026. (Company announcement)
- NEXT has begun share repurchases as authorized at the 2025 Annual General Meeting. The company has approval to buy back up to 18,467,000 shares, representing 14.99% of issued share capital. This program will run until the next AGM or August 15, 2026, whichever comes first. (Company announcement)
Valuation Changes
- Fair Value Estimate has increased from £129.56 to £138.64, reflecting a modest improvement in the company’s underlying valuation.
- Discount Rate has risen slightly from 8.75% to 9.07%, indicating a marginally higher required rate of return by analysts.
- Revenue Growth Forecast has improved, moving from 5.47% to 6.07%, suggesting more optimistic expectations for top-line expansion.
- Net Profit Margin Projection has edged up from 12.40% to 12.48%, representing a minor enhancement in profitability assumptions.
- Future P/E Ratio has increased from 20.94x to 22.07x, indicating slightly higher anticipated earnings multiples for NEXT.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.