Bloomsbury Publishing PLC (LSE:BMY) continues to ride a wave of popularity, helped in no small part by the success of fantasy author Sarah J Maas.
The firm’s latest trading update showed results ahead of expectations, with broad-based strength across its consumer publishing arm.
Shares in the publisher rose after the announcement last week, but Deutsche Bank still sees further upside.
The bank maintained its ‘buy’ rating while trimming its price target to 796p from 852p, against a last close of 613p.
It lifted profit forecasts for the 2025 financial year by 5%, noting better-than-expected growth in consumer sales – even without a new release from Maas next year.
The American author’s sprawling fantasy series have become a mainstay for Bloomsbury, whose other hits include titles by JK Rowling and Elizabeth Gilbert.
But the business is not wholly reliant on one name. Deutsche Bank noted strong performance from other adult and children’s authors, while Bloomsbury’s academic and professional arm continues to expand thanks to its Rowman & Littlefield acquisition and digital resources business.
Group revenue is now expected to hit £360mn in 2025, up 8%, while adjusted profit before tax is forecast to rise 5% to £41.7mn.
That margin gap reflects Bloomsbury’s continued investment in infrastructure, which Deutsche says is necessary to support its medium-term growth ambitions.
In other words, the company is spending to stay ahead - even if the immediate return is a little lower than the top line might suggest.