S&P 500 hits a fresh record high on stronger economic growth, Nvidia pares losses
On Thursday, Deutsche Bank (ETR:DBKGn)’s analysis led to a revision of the price target for 4Imprint Group Plc (LON:FOUR:LN) (OTC: FRRFF), with the target being adjusted to GBP62.50 from the previous GBP71.70. Despite this change, the firm maintains a Buy rating on the stock.
The revision comes amidst concerns over the uncertainty of the US promotional product markets. However, 4Imprint has demonstrated an increase in revenue, market share, and margin for the year 2024. The company’s strong market position within a fragmented industry, alongside its well-invested infrastructure, suggests resilience and potential to continue outperforming competitors and protecting its profit margins.
The year 2025 poses challenges, particularly with tariff uncertainty. Nonetheless, Deutsche Bank sees a silver lining, indicating that the recent decline in 4Imprint’s share price has already accounted for the tougher conditions ahead. This suggests that the stock may hold good long-term value, even considering the forecasted earnings per share downgrades, which are estimated to be around 10% for fiscal years 2025 and 2026.
The analyst’s statement sheds light on the rationale behind the new price target: "While US promotional product markets are uncertain, FOUR has increased 2024 revenue, market share and margin. 2025 remains tough with tariff uncertainty, but a strong market position in a fragmented market and well-invested infrastructure gives us some confidence that FOUR can continue to outperform and protect margin. Share price decline looks to have discounted more difficult conditions, implying we see good long-term value despite EPS downgrades (c. -10% in FY25/26E) and reduce our TP to 6250p from 7170p."
Investors will be watching closely to see how 4Imprint navigates the uncertain market conditions while leveraging its strengths to sustain growth and profitability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.