Gamma Communications (GAMA)

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Share Price:
1,082.00p
Market Cap:
£964.59m
Change Today:
112.50p
Sector:
Telecom Operators

Berenberg lowers target price on Gamma Communications

By Iain Gilbert

Date: Friday 13 Jun 2025

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg lowered their target price on communication services and solutions provider Gamma Communications from 2,000.0p to 1,570.0p on Friday as it said macro pressures on UK SMEs had forced it to lower forecasts.
Berenberg said following Gamma Communications' annual general meeting trading update in May, it had reiterated its 'buy' rating on the stock but had opted to lower its DCF-based price target. However, Berenberg noted that its new target price still offered an "attractive" potential share price upside of roughly 31%.

"We cut our group EPS five-year CAGR forecast to 9% from 11%, driven by our expectation of lower organic growth in the UK Business division," said the German bank.

"We continue to expect a valuation re-rating in the Gamma shares from current levels (trading at 13x P/E and 8x EV EBITDA). We still believe there is further share price upside potential from more value-accretive M&A or additional shareholder distributions given headroom provided by Gamma's strong FCF generation (c8% FCF yield) and under-leveraged balance sheet."





Reporting by Iain Gilbert at Sharecast.com

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

GAMA Market Data

Currency UK Pounds
Price 1,082.00p
Change Today 112.50p
52 Week High 1,106.00p
52 Week Low 701.00p
Volume 1,436,122
Shares Issued 89.15m
Market Cap £964.59m

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