Analysts have modestly lowered their price target for Allegro.eu to PLN 40.54 from PLN 40.93. They cite the company's ongoing execution momentum and an improved balance of risk and reward as key factors behind the adjustment.
Analyst Commentary
Bullish Takeaways
- Bullish analysts note improved execution momentum, which supports the view that the company's recent initiatives are having a positive impact on overall performance.
- An increased price target suggests confidence in Allegro.eu's ability to balance growth opportunities with current risk factors.
- The risk/reward profile for the shares is seen as more balanced, indicating that the downside risks have lessened relative to potential upside.
- Upgrades in analyst ratings reflect expectations for steadier long-term growth and resilience within the company's operating model.
Bearish Takeaways
- Bearish analysts remain cautious, pointing out lingering uncertainties that could affect valuation, such as market competition and cost pressures.
- While the recent upgrade implies improving sentiment, the move to a neutral stance signals tempered enthusiasm regarding near-term outperformance.
- Some analysts highlight that further re-rating may be limited without concrete evidence of sustained margin improvement and execution on strategic initiatives.
What's in the News
- Allegro.eu has issued consolidated earnings guidance for full-year 2025, with expected revenue between PLN 11.9 billion and PLN 12.1 billion. This represents anticipated year-over-year growth of 13% to 17% (Key Developments).
- The Board of Directors has authorized a share buyback plan as of November 18, 2025 (Key Developments).
- Allegro.eu announced a share repurchase program, aiming to buy back up to 4,664,941 shares for PLN 209.92 million, with a maximum purchase price set at PLN 45 per share. These shares will be used to fulfill obligations under an employee incentive plan. The program is valid through May 31, 2026 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target: The fair value estimate has decreased slightly, changing from PLN 40.93 to PLN 40.54.
- Discount Rate: This metric has edged up marginally, rising from 10.03% to 10.05%.
- Revenue Growth: Projections have been revised upward, with the expected growth rate moving from 12.03% to 12.16%.
- Net Profit Margin: The margin has declined slightly, from 16.59% to 16.55%.
- Future P/E: The forward price-to-earnings ratio has increased from 18.94x to 21.47x, reflecting higher expected valuation multiples.
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