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MEI: Future Dividend And Earnings Outlook Will Support A Higher Share Price

EV Declines And Stellantis Delays Will Drag Down Prospects

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MEI
AnalystLowTarget
Not Invested
Published 24 Aug 2025

Update shared on 14 Dec 2025

Fair value Increased 29%
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AnalystLowTarget's Fair Value
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1Y
-45.6%
7D
-8.4%

Analysts have raised their price target on Methode Electronics by approximately 29 percent to reflect a modest return to revenue growth, a slightly higher required return, and expectations for a richer future earnings multiple, despite a marginally lower profit margin outlook.

What's in the News

  • Methode Electronics reaffirmed its earnings guidance for fiscal 2026, projecting sales in the range of $900 million to $1,000 million (Company guidance).
  • The board of directors declared a quarterly dividend of $0.05 per share, payable on October 31, 2025, to shareholders of record as of October 29, 2025 (Company announcement).

Valuation Changes

  • The Fair Value Estimate has risen meaningfully, moving from 7.0 to 9.0, reflecting a higher intrinsic valuation for the shares.
  • The Discount Rate has increased slightly, from 11.67 percent to 12.50 percent, implying a marginally higher required return and risk assumption.
  • The Revenue Growth outlook has improved significantly, shifting from an expected decline of about 4.2 percent to a modest increase of roughly 0.6 percent.
  • The Net Profit Margin forecast has edged down slightly, from about 9.1 percent to approximately 8.8 percent, indicating a more conservative profitability view.
  • The Future P/E Multiple has expanded from roughly 4.1x to about 5.0x, signaling expectations for a richer earnings valuation over time.

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Disclaimer

AnalystLowTarget 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 AnalystLowTarget 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 AnalystLowTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.