Peel Hunt is keeping its ‘buy’ rating and a 1,310p price target on Future PLC (LSE:FUTR), even after the publisher cut its full-year outlook following a tougher second quarter. The group, best known for titles like PC Gamer and Homes & Gardens, saw organic revenue fall 1% to £378 million in the first half, while adjusted operating profit held steady at £101 million, with margins flat at 27%.
Earnings per share rose 4% to 60p, and net debt dropped slightly to £241 million, with leverage unchanged at 1.1 times. Future also launched a new £55 million share buyback, which Peel Hunt says could add 5-6% to EPS in 2026.
Performance was mixed across segments. Magazines ticked up 1%, eCommerce affiliate revenues climbed 9%, and Go.Compare held relatively steady. However, media revenues dropped 2%, hurt by softer digital advertising, especially in the US. B2B advertising remains weak, down 13%.
Looking ahead, Future expects a small organic revenue decline for the full year but reiterated its 28% EBIT margin target. Peel Hunt sees a 5% downgrade to 2025 earnings forecasts but notes much of the bad news is already priced in, with the stock trading at just 5x 2026 earnings.