Update shared on 26 Oct 2025
Drax Group Analyst Price Target Sees Marginal Adjustment
Analysts have made a slight downward revision to Drax Group's price target, adjusting it by a few pence. Minor changes to the discount rate and future profit assumptions influenced their updated valuation.
What's in the News
- Drax Group plans to propose a 2025 dividend of 29.0 pence per ordinary share, an 11.5% increase. An interim dividend of 11.6 pence per share is scheduled to be paid on 24 October 2025 (Key Developments).
- From January to July 2025, Drax Group repurchased 24,928,160 shares, amounting to 6.74% of its shares, for £156.6 million. This completes its announced buyback tranche (Key Developments).
- On July 30, 2025, the company raised its equity buyback authority by £450 million, bringing the total buyback authorization to £750 million and extending the plan through the end of 2028 (Key Developments).
Valuation Changes
- Discount Rate has decreased slightly from 8.43% to 8.40%.
- Revenue Growth is largely unchanged at -5.75%.
- Net Profit Margin remains virtually flat at 4.34%.
- Future P/E has edged down marginally from 18.15x to 18.14x.
- Fair Value estimate remains at £8.39.
Disclaimer
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