Analysts have reduced their price target for Mobico Group from £0.35 to £0.30. This reflects expectations of weaker revenue growth even though there have been slight improvements in profit margin forecasts.
Analyst Commentary
Recent commentary from market observers highlights a mix of cautious and positive perspectives regarding Mobico Group’s valuation, execution, and growth prospects following the adjusted price target.
Bullish Takeaways
- Bullish analysts acknowledge slight improvements in profit margin forecasts, suggesting some operational efficiencies may be gaining traction.
- Despite reduced revenue growth expectations, the retention of a neutral or sector perform rating reflects continued confidence in the fundamental stability of Mobico Group.
- The company's ability to maintain profit improvements in a challenging market environment is considered a supportive factor for its medium-term performance.
Bearish Takeaways
- Bearish analysts are concerned about weaker revenue growth, which prompted a reduction in the price target and signals more subdued growth expectations for the upcoming quarters.
- Ongoing headwinds in the operating environment, including potential macroeconomic pressures, may hinder the company’s ability to accelerate its top-line growth.
- There is uncertainty over the consistency of profit margin improvements, which could pose risks to the current valuation if not sustained.
What's in the News
- Mobico Group Plc announced the appointment of KPMG LLP as its new auditor, effective from November 26, 2025. (Company announcement)
- The company is changing its accounting reference date and financial year end from December 31 to March 31. This change takes effect from November 26, 2025. (Company announcement)
- The ALSA subsidiary, in a joint venture, won an eight-year, €500 million contract to operate mainly electric vehicles and shuttle services for Qiddiya, a new city near Riyadh, Saudi Arabia. (Company announcement)
- Deloitte LLP confirmed its resignation as Mobico Group's auditor, effective September 19, 2025. (Company announcement)
Valuation Changes
- Fair Value: Decreased from £0.39 to £0.37, indicating a slightly lower intrinsic valuation.
- Discount Rate: Remained unchanged at 13.19%, reflecting a consistent approach to risk assessment.
- Revenue Growth: Declined from -3.14% to -6.26%, which points to significantly weaker top-line expectations.
- Net Profit Margin: Increased slightly from 6.05% to 6.30%, which suggests minor improvements in expected profitability.
- Future P/E: Fell marginally from 1.80x to 1.80x, indicating little change in anticipated earnings multiples.
Have other thoughts on Mobico Group?
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.