Update shared on 17 Nov 2025
Analysts have reduced their price target for Mobico Group from £0.35 to £0.30. They cited updated forecasts that reflect slightly higher discount rates and stable revenue growth expectations.
Analyst Commentary
Street research following the recent price target revision has highlighted several key points regarding Mobico Group's valuation, operational execution, and growth outlook.
Bullish Takeaways- Bullish analysts note that revenue growth expectations remain stable, indicating resilience in Mobico’s core business segments.
- Continued sector perform ratings reflect underlying confidence in the company’s operational execution despite recent adjustments to valuations.
- Discount rate changes are considered modest, which suggests limited risk in the company’s long-term financial health.
- Some observers believe Mobico’s defensive market position could support future recovery if macroeconomic headwinds ease.
- Bearish analysts express caution that the lower price target signals limited near-term upside for shareholders.
- Concerns persist regarding the potential impact of higher discount rates on future cash flows and overall valuation.
- There is wariness about the company’s ability to accelerate growth given continued macroeconomic uncertainties.
- Selective skepticism remains about whether stability in revenue is enough to offset ongoing pressures on profitability and margins.
What's in the News
- Mobico Group's ALSA subsidiary, in a joint venture, secured an eight-year, capital-light contract valued at €500 million to operate electric and conventional vehicles in Qiddiya, Saudi Arabia. The contract covers Park & Ride and shuttle services. (Key Developments)
- The contract includes the deployment of 156 vehicles, of which 126 will be electric. This supports Qiddiya's ambition to become the largest entertainment destination in Saudi Arabia. (Key Developments)
- Deloitte LLP has resigned as auditor of Mobico Group, with the resignation effective as of 19 September 2025. (Key Developments)
Valuation Changes
- The discount rate has risen slightly from 12.94% to 13.19%.
- Revenue growth projections remain almost unchanged, with a marginal adjustment from -3.14% to -3.14%.
- The net profit margin is nearly flat, moving from 6.05% to 6.05%.
- The future P/E ratio has increased modestly from 1.79x to 1.80x.
- The fair value estimate remains steady at £0.39.
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.