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CRAI: Dividend Hike And Buybacks Will Support Stronger Future Returns

Update shared on 03 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-3.6%
7D
4.7%

Analysts have modestly raised their price target on CRA International to $249.50, citing updated discount rate and valuation assumptions that slightly increase the implied future price to earnings multiple, while leaving core growth and margin expectations essentially unchanged.

What's in the News

  • Updated buyback activity shows CRA International repurchased 21,532 shares, or 0.33% of outstanding shares, for $4 million between June 29 and September 27, 2025, bringing cumulative repurchases under the long running program to 6,371,169 shares, or 74.69%, for $315.82 million (company filing).
  • The company increased its quarterly cash dividend by 16%, raising the payout from $0.49 to $0.57 per common share. The dividend is payable on December 12, 2025 to shareholders of record on November 25, 2025 (company press release).
  • Full year fiscal 2025 revenue guidance was raised to a range of $740 million to $748 million on a constant currency basis. This is up from prior guidance of $730 million to $745 million (company guidance update).

Valuation Changes

  • Fair Value Estimate: Unchanged at $249.50 per share, reflecting stable long term fundamental assumptions.
  • Discount Rate: Risen slightly from 7.25% to approximately 7.45%, indicating a modestly higher required return.
  • Revenue Growth: Effectively unchanged, remaining at about 3.8% annually in the long term model.
  • Net Profit Margin: Essentially flat, holding near 8.0% in forward projections.
  • Future P/E Multiple: Risen slightly from 23.6x to about 23.7x, marginally increasing the implied valuation multiple applied to earnings.

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Disclaimer

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