Update shared on 03 Nov 2025
Fair value Increased 4.86%Renishaw's analyst price target has increased from £35.19 to £36.91, as analysts cite stronger than expected margin improvement and updated profit forecasts.
Analyst Commentary
Following the recent price target increases for Renishaw, analysts have highlighted several factors influencing their outlooks. The discussion centers on the company's valuation, operational execution, and future growth prospects.
Bullish Takeaways
- Bullish analysts recognize Renishaw's successful focus on improving EBITA margins, with performance exceeding prior expectations.
- Upward revisions to profit forecasts, particularly for FY26 and FY27 earnings, reflect increased confidence in the company's operational execution and financial outlook.
- Enhanced cost control and effective strategic measures are seen as key contributors to the margin improvement. This supports higher valuation multiples.
- Recent price target increases suggest that expectations for sustainable profit growth have strengthened. This supports a more constructive view on long-term growth potential.
Bearish Takeaways
- Despite upward price target revisions, several analysts continue to maintain Hold ratings, signaling caution regarding the stock's current valuation.
- There are concerns that, while margins have improved, the sustainability of these gains amid potential macroeconomic headwinds remains uncertain.
- Some analysts remain wary about the pace of revenue growth relative to improved profitability, which may limit further upside in the near term.
What's in the News
- Renishaw plc announced a proposed final dividend of 61.3 pence per share for Fiscal Year 2025. This is an increase from the previous year's 59.4 pence and is payable on 5 December 2025 to shareholders registered by 31 October 2025 (Key Developments).
- The company issued new revenue guidance for full year 2025, expecting figures to be around the middle of the £700 million to £720 million range (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has increased from £35.19 to £36.91, reflecting improved market confidence.
- Discount Rate has risen slightly from 8.43% to 8.46%.
- Revenue Growth expectations have decreased marginally from 5.50% to 5.26%.
- Net Profit Margin estimate has fallen from 16.99% to 16.34%.
- Future P/E ratio has increased from 22.7x to 25.0x, which indicates higher valuations on forward earnings.
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.