RBC Capital lowers target price on Marshalls

20th Jan 2026 08:52

(Sharecast News) - Analysts at RBC Capital Markets lowered their target price on natural stone and concrete products manufacturer Marshalls from 240p to 195p on Tuesday as they took "a more cautious view" on the group's full-year 2026 trading performance.

RBC Capital, which has a 'sector perform'rating on the stock, noted that Marshalls had met FY25 expectations, rounding off "a challenging year for the group".

However, in the absence of a market recovery in FY26, RBC Capital sees the risk of continued pricing pressure in Landscaping, which could offset cost savings to a greater extent than factored into consensus.

As a result, the Canadian bank trimmed its below consensus FY26/27 adjusted pre-tax profit estimates by roughly 8% on average, leading to the fall in its discounted cashflow-based price target.

"We expect FY26 consensus to settle at c.£50m PBT (previous: £52m), which would leave us c.7% below at £46m. We factor in c.£8m of cost savings on par with consensus, but are more cautious on revenue growth. We take a prudent view on 2026 for the broader sector amid recent UK construction data, low consumer confidence and weak exit rates," added RBC.

Reporting by Iain Gilbert at Sharecast.com