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Government CfD And Renewables Will Drive Growth Amid Pellet Risks

Published
02 Mar 25
Updated
12 Oct 25
AnalystConsensusTarget's Fair Value
UK£8.39
14.9% undervalued intrinsic discount
12 Oct
UK£7.14
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1Y
7.9%
7D
1.6%

Author's Valuation

UK£8.3914.9% undervalued intrinsic discount

AnalystConsensusTarget Fair Value

Shared on12 Oct 25
Fair value Decreased 2.20%

Analysts have revised their price target for Drax Group downward, lowering the estimated fair value from £8.58 to £8.39 per share. This change reflects updated outlooks on the company's profitability and growth prospects.

Shared on04 Sep 25

Analysts maintain a positive outlook on Drax Group due to anticipated value creation from UK grid intermittency, upcoming share price catalysts, and a possible £200M share buyback extension; however, the consensus price target remains unchanged at £8.58. Analyst Commentary Expectation of increased value creation for Drax as grid intermittency rises in the UK power sector.

Shared on01 May 25
Fair value Increased 14%

Shared on23 Apr 25

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on17 Apr 25

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on09 Apr 25
Fair value Decreased 0.27%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on02 Apr 25
Fair value Decreased 19%

AnalystConsensusTarget has decreased future PE multiple from 16.8x to 12.4x.

Shared on26 Mar 25
Fair value Increased 14%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on19 Mar 25
Fair value Decreased 3.66%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on12 Mar 25
Fair value Increased 3.80%

AnalystConsensusTarget has increased future PE multiple from 15.2x to 17.4x, decreased discount rate from 7.9% to 7.0% and increased shares outstanding growth rate from -0.1% to -0.0%.