Update shared on15 Aug 2025
Fair value Increased 9.42%Analysts have raised their price target for Magic Software Enterprises to $18.00, citing better-than-expected revenue growth and improved operational outlook despite some margin pressure.
Analyst Commentary
- Top-line growth exceeded both internal and consensus estimates.
- Margins were lower than expected.
- Management slightly raised year-end guidance citing positive operational traction.
- Price target multiples have been rolled forward to FY26 revenues.
- Bullish analysts increased their price targets to reflect improved revenue outlook despite margin pressure.
What's in the News
- Declared a semi-annual cash dividend of 29.6 cents per share, totaling approximately $14.5 million, representing about 75% of first-half 2025 distributable profits.
- Raised full-year 2025 revenue guidance to $600–$610 million, up from $593–$603 million, reflecting anticipated annual revenue growth of 8.6% to 10.4%.
- Shareholders approved the re-appointment of Ziv Haft Certified Public Accountants (BDO International) as independent auditor for 2025 and authorized the Board to fix compensation.
- Reiterated 2025 annual revenue guidance of $593–$603 million, projecting 7.3% to 9.1% annual growth, prior to the subsequent upward revision.
Valuation Changes
Summary of Valuation Changes for Magic Software Enterprises
- The Consensus Analyst Price Target has risen from $16.45 to $18.00.
- The Consensus Revenue Growth forecasts for Magic Software Enterprises has significantly risen from 3.1% per annum to 6.6% per annum.
- The Net Profit Margin for Magic Software Enterprises has significantly risen from 7.31% to 9.14%.
Disclaimer
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