Clarkson Plc stock target cut to GBP51.00 by Deutsche Bank

Published 11/03/2025, 12:52
Clarkson Plc stock target cut to GBP51.00 by Deutsche Bank

On Tuesday, Deutsche Bank (ETR:DBKGn) analysts adjusted their price target for Clarkson Plc (CKH:LN) (OTC: CKNHF), a leading provider of integrated shipping services, reducing it slightly from GBP51.50 to GBP51.00. Despite the adjustment, the firm maintains its positive stance with a Buy rating on the company’s shares.

The adjustment follows Clarkson’s recent financial results, which indicated a year-over-year revenue increase of 3% to £661 million. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 1% to £101.7 million, surpassing Deutsche Bank’s estimate of £99 million. The company’s profit before tax (PBT) saw a 6% increase to £115.3 million, and earnings per share (EPS) climbed by 4% to 284.5p, which is above the bank’s expectation of 282.5p. Additionally, Clarkson’s dividend per share (DPS) experienced a 7% hike to 109p.

The performance was set against a generally supportive market environment, as noted by the Clarksea Index, which averaged $25.0k/day, marking a 6% year-over-year growth. However, the market did experience some softening during the fourth quarter. Deutsche Bank views Clarkson’s achievements as robust, especially considering the challenges faced towards the end of the year.

Clarkson’s Broking business has been expanding its team, hiring more personnel than in the previous fiscal year, drawing from competitors, principals, and graduates. The company’s digital Sea platform has also seen growth in customer numbers and fixture volumes. The recent release of Sea Trade 2.0 in the second half of 2025 and the successful migration of all clients to the new platform have been key developments.

The company’s strong financial health is further emphasized by its free cash flow (FCF), which showed a modest increase of 1% year-over-year to £89 million. Consequently, Clarkson’s net free cash resources swelled by approximately £40 million year-over-year, reaching £216 million. This positions the company well for future investment opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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