Update shared on04 Sep 2025
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.
- Anticipation of positive share price catalysts ahead of upcoming interim results.
- Market positioning well aligned to benefit from shifts in the UK energy landscape.
- Forecast of a GBP 200M extension to Drax’s share buyback program.
- Bullish analysts see attractive upside in the stock based on updated outlook and potential capital returns.
What's in the News
- Completed repurchase of 45,819,434 shares (12.28% of share capital) for £290.5 million under the previously announced buyback programme.
- Announced an 11.5% increase in the proposed 2025 dividend to 29.0 pence per share, with a 40% interim dividend of 11.6 pence to be paid in October.
- Appointed Frank Lemmink, former Shell executive, as incoming CFO and executive director, succeeding Andy Skelton effective September, with transition support through December.
Valuation Changes
Summary of Valuation Changes for Drax Group
- The Consensus Analyst Price Target remained effectively unchanged, at £8.58.
- The Future P/E for Drax Group has risen slightly from 17.88x to 18.57x.
- The Net Profit Margin for Drax Group remained effectively unchanged, at 4.34%.
Disclaimer
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