Update shared on08 Oct 2025
Fair value Increased 0.53%Narrative Update on SSE Price Target
SSE's analyst price target has been raised, climbing by £125 to reflect strengthened profit margins and increased confidence in the company's future earnings potential, according to recent analyst assessments.
Analyst Commentary
Analysts have recently adjusted their outlook on SSE, raising price targets and maintaining confidence in the company's performance. The following summarizes key bullish and bearish perspectives noted in recent research updates.
Bullish Takeaways- Bullish analysts point to sustained improvements in profit margins as a key driver behind raised price targets and positive ratings.
- Recent price target increases reflect strengthened conviction in SSE's future earnings trajectory and operational stability.
- Analysts highlight the company's ability to execute on growth plans, which reinforces the case for valuation upside.
- The maintenance of Overweight ratings underscores a consensus that SSE remains well positioned within its sector despite broader market uncertainties.
- While targets have risen, some analysts caution that further upside is contingent on the company's ability to deliver consistent revenue growth without margin slippage.
- There are concerns that external market volatility or regulatory changes could pose challenges to SSE's valuation momentum.
- Analysts note that the current optimistic targets price in successful execution of ongoing projects, leaving little room for error in future results.
What's in the News
- SSE announced that 23,080 shareholders have chosen to receive the final dividend for the year ended 31 March 2025 in the form of a Scrip dividend, totaling 58,951,063 ordinary shares (Key Developments).
- The overall Scrip dividend take-up for the financial year ended 31 March 2025 was 9.7%. This remains below the 25% cap and eliminates the need for a buy-back to limit scrip dilution (Key Developments).
- 1,369,268 new ordinary shares will be issued on 18 September 2025. This represents a 0.12% increase in issued share capital, based on the dividend record date of 25 July 2025 (Key Developments).
- The Scrip Reference Share Price for the final dividend was set at 1,849 pence per ordinary share (Key Developments).
Valuation Changes
- The Fair Value Estimate has risen slightly, increasing from £22.18 to £22.30 per share.
- The Discount Rate remains virtually unchanged and stays steady at approximately 6.82%.
- The Revenue Growth forecast has fallen significantly, decreasing from 7.07% to 4.56%.
- The Net Profit Margin has improved, moving up from 19.20% to 20.00%.
- The Future P/E Ratio has risen modestly, climbing from 12.64x to 13.08x.
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.