Analysts have raised their price target for ActiveOps from £2.87 to £3.12, citing modest improvements in revenue growth and a refined outlook on discount rates. They also note a tempering in forecast profit margins.
What's in the News
- ActiveOps held an Analyst and Investor Day to highlight its transformation through Decision Intelligence. The company outlined strategies for growth with enterprise customers and partners, prioritizing sustainable, profitable expansion, and set a financial ambition to reach £100 million ARR with a 25% EBITDA margin (Key Developments).
- The company issued new group earnings guidance for the first half and full year of 2026, projecting overall revenue growth of approximately 45% year-on-year. Full year revenues are expected to exceed consensus expectations. Profit before tax for fiscal 2026 is anticipated to remain in line with projections, with operational efficiencies impacting results from fiscal 2027 (Key Developments).
- A previously announced partial contract termination by a major EMEIA ControliQ customer has been fully reversed. The renewal now covers the original agreement and includes the reinstatement of users. ActiveOps is in discussions for further expansion with this customer, reflecting the proven value of its solutions (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has increased slightly from £2.87 to £3.12.
- Discount Rate has decreased marginally from 8.69% to 8.67%.
- Revenue Growth forecast has increased modestly from 17.96% to 18.43%.
- Net Profit Margin expectation has decreased significantly from 6.6% to 4.94%.
- Future P/E has increased notably from 79.19x to 113.58x.
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