Analysts have raised their price target for Renishaw, reflecting improved margin outlooks and stronger earnings forecasts. The consensus has moved from 2,450 GBp to 3,530 GBp per share.
Analyst Commentary
Bullish Takeaways- Bullish analysts have increased price targets significantly, which reflects improved confidence in Renishaw's valuation and growth prospects.
- Stronger EBITA margin performance is cited as delivering ahead of prior expectations, which has led to FY26 and FY27 profit forecasts rising by double digits.
- The company's focus on operational efficiency and profitability has been a key factor in upward revisions to earnings outlooks.
- Recent target price increases indicate that consensus now anticipates stronger earnings momentum over the medium term.
- Despite optimism about margin improvement, analysts continue to maintain Hold ratings, which suggests concerns about upside potential at current valuations.
- Some caution remains about the pace and sustainability of future growth, especially following significant upward earnings adjustments.
- The market may require further evidence of consistent performance to justify premium valuation multiples assigned in recent price target upgrades.
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 59.4 pence in FY 2024. The dividend is scheduled for payment on 5 December 2025 to shareholders registered by 31 October 2025. (Key Developments)
Valuation Changes
- Fair Value: Remains unchanged at £36.91 per share, indicating no revision in the model-derived intrinsic value.
- Discount Rate: Increased slightly from 8.64% to 8.67%, reflecting a minor adjustment in risk assumptions.
- Revenue Growth: Steady at 5.26%, with no updates to the projected top-line expansion rate.
- Net Profit Margin: Holding at 16.34%, suggesting no change to expectations for company profitability.
- Future P/E: Increased marginally from 25.08x to 25.10x, indicating a minimal rise in anticipated valuation multiples.
Have other thoughts on Renishaw?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeDisclaimer
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.