Update shared on04 Sep 2025
Analysts remain divided on Severn Trent, balancing optimism over operational execution and sector stability against concerns about inflation and regulatory risk, resulting in an unchanged consensus price target of £28.93.
Analyst Commentary
- Bullish analysts cited confidence in Severn Trent's long-term earnings potential and operational execution.
- Optimism around regulatory clarity and expected stability in the UK water utility sector positively influenced bullish price targets.
- Bullish analysts anticipate moderate growth in Severn Trent’s core business, supported by efficiency improvements and cost controls.
- Bearish analysts expressed concerns around potential inflationary pressures on input costs, possibly compressing margins.
- Bearish analysts pointed to emerging risks from regulatory reviews that could lead to less favorable allowed returns for utilities.
What's in the News
- Approved appointment of PricewaterhouseCoopers LLP as Auditor.
- Approved amendments to the Articles of Association.
Valuation Changes
Summary of Valuation Changes for Severn Trent
- The Consensus Analyst Price Target remained effectively unchanged, at £28.93.
- The Future P/E for Severn Trent remained effectively unchanged, moving only marginally from 19.06x to 19.00x.
- The Net Profit Margin for Severn Trent remained effectively unchanged, at 16.60%.
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.