Shares in Digitalbox PLC (AIM:DBOX, FRA:RLXB) rose after the company signalled a strong finish to 2025, with analysts pointing to growing confidence in a step-change in profitability next year.
In a note responding to the group’s latest trading update, broker Panmure Liberum said full-year revenue is expected to rise by a high single-digit percentage to about £3.9 million, while underlying earnings before interest, tax, depreciation and amortisation are forecast to come in at around £330,000.
That is well ahead of the broker’s previous estimate of £219,000, which had already factored in planned investment costs.
Panmure Liberum said the improvement reflects solid execution and continued momentum, even though detailed divisional data has yet to be provided. It added that UK digital advertising rates appear stable at the start of the year, offering additional reassurance.
The broker highlighted Digitalbox’s strategy of diversifying traffic sources as increasingly important as publishers grapple with the impact of generative artificial intelligence on search.
With a sharp uplift in earnings expected in 2026, Panmure Liberum said the shares look modestly valued and reiterated its 'buy' rating.
The shares were up 1.6% at 4.72p. Panmure's price target is 10p.