Focusrite shares moved higher as new forecasts pointed to a 47% upside. The outlook comes after a reset to profit margins.
- Focusrite closed at 236p, gaining 7.27% on the day and stretching its five-session run to 18.0%. The FTSE AIM All-Share edged up 0.34%.
- The average price target among S&P Global analysts is 348p, about 47% higher than where shares closed Monday.
- By reporter calculation, Focusrite trades at about 6.0x enterprise value to EBITDA, using pro-forma 12-month EBITDA and reported net debt.
- The next thing for investors is the final dividend. The 4.64p payout goes ex-dividend July 9.
Focusrite PLC LON:TUNE jumped Monday as investors bought into the audio tech firm’s low debt and stronger margins after last week’s final numbers. The AIM-listed stock is still trading under analyst targets, even with the strong move up.
Shares last traded at 236p, up 16p, or 7.27%, as of 4:44 p.m. GMT, valuing the company behind Scarlett audio and Novation at around £138.7 million. London’s main market had closed ahead of the reported 20:01 BST timestamp, with official hours running 0800 to 1630 BST.
The stock ended ahead of the junior market. The FTSE AIM All-Share added 0.34% to close at 778.74. The FTSE 100 dropped 0.3%, and the FTSE 250 was down 0.2%.
Monday’s price action isn’t the only thing in focus. Focusrite is at 236p, still down 7.5% from its 52-week peak of 255p. Analysts on average see the stock heading to 348p, suggesting almost 47.25% upside. StockAnalysis, citing S&P Global, counts four analysts with a “Strong Buy,” setting price targets between 300p and 395p. StockAnalysis
Focusrite switched its year-end to February, with management pointing to the pro-forma 12-month numbers as a better guide. For the 12 months to Feb. 28, 2026, revenue was up 1.3% at 164.6 million pounds. Adjusted EBITDA climbed 5.7% to 24.7 million pounds. Gross margin improved by 1.7 points to 45.1%.
| Focusrite pro-forma measure | 12 months to Feb. 2026 | 12 months to Feb. 2025 | Change |
|---|---|---|---|
| Revenue | £164.6 mln | £162.5 mln | up 1.3% |
| Gross margin | 45.1% | 43.4% | gain of 1.7 pts |
| Adjusted EBITDA | £24.7 mln | £23.3 mln | increase of 5.7% |
| Adjusted diluted EPS | 15.6p | 16.9p | fell 7.7% |
| Net debt | £8.6 mln | £17.9 mln | lower by £9.3 mln |
Based on Monday’s market cap and net debt of £8.6 million, Focusrite’s enterprise value lands at about £147.3 million. The shares are trading at close to 6.0x pro-forma adjusted EBITDA. Net debt now stands at about 0.35x EBITDA, down from around 0.77x on the same measure a year ago.
Chief Executive Tim Carroll said first quarter trading beat last year. He said underlying demand stayed healthy in Content Creation and Audio Reproduction. Carroll added Content Creation saw 3.6% organic constant-currency growth, and Audio Reproduction was mostly steady.
| Market forecast or target | Current/base figure | Forecast or target | Implied move |
|---|---|---|---|
| Shares trade at 236p, broker target average is 348p | 236p | 348p | +47.25% |
| Shares at 236p, Berenberg sets target at 355p | 236p | 355p | +50.42% |
| Revenue expected to grow from £163.67 mln in FY2026 to £171.76 mln for FY2027 | £163.67 mln FY2026 | £171.76 mln FY2027 | +4.94% |
| EPS seen rising from 16p in FY2026 to 18p in FY2027 | 16p FY2026 | 18p FY2027 | +18.29% |
| Forward P/E forecast at 12.79x, no base | — | 12.79x | — |
The forecast table points to operating leverage as the bigger driver in the rally than sales growth. Consensus revenue for FY2027 is just 4.94% higher than FY2026, but EPS is seen jumping 18.29%. Berenberg repeated its Buy rating and 355p target on July 2, StockAnalysis said.
Focusrite said it developed its own silicon platform for upcoming Content Creation gear, aiming to boost performance, speed up launch times and cut dependence on outside chips. The company also said direct-to-consumer e-commerce is now a bigger channel.
Some trouble spots remain. Basic pro-forma EPS went from a 3.4p profit to a 7.0p loss. Reported 18-month EPS showed a 3.9p loss. The company blamed a 9.8 million pound non-cash impairment on Sequential assets for the hit to reported operating profit, linking it to weakness in premium synthesizers and faster manufacturing shifts.
The board has proposed a final dividend of 4.64p. That brings the total payout for the 18-month period to 8.84p. Shares go ex-dividend July 9, with a record date set for July 10 and payment slated for Aug. 7, if shareholders approve it at the Aug. 4 annual meeting.
