How Recent Analyst Upgrades Are Shaping the NEXT Investment Story

Analysts have recently raised their fair value estimate for NEXT stock from £129.56 to £138.64. This highlights a renewed optimism in the company's growth prospects. This adjustment comes as revenue growth forecasts also improve, reflecting greater confidence in NEXT’s ability to expand its top line. Stay tuned to find out how investors can track shifts in sentiment as the narrative for NEXT continues to evolve.

Analyst Price Targets don't always capture the full story. Head over to our Company Report to find new ways to value NEXT.

What Wall Street Has Been Saying

🐂 Bullish Takeaways

Berenberg's Anne Critchlow reaffirmed a Buy rating and sharply raised the price target to 17,800 GBp from 14,700 GBp, highlighting strong confidence in NEXT's operational execution and growth momentum. Morgan Stanley's Grace Smalley increased the price target to EUR 15,000 from EUR 14,000, maintaining an Overweight rating. The revision signals positive sentiment toward NEXT’s current strategy and its ability to deliver on growth prospects. Several analysts highlighted improvements in management execution and cost control as key factors supporting their higher targets, while also noting the quality of financial transparency NEXT has demonstrated in recent quarters.

🐻 Bearish Takeaways

JPMorgan raised its price target to 13,030 GBp from 11,700 GBp but maintained a Neutral rating. This reflects some caution around valuation, noting that a degree of future upside may already be reflected in the current share price. Deutsche Bank increased the price target to 11,600 GBp from 10,800 GBp, upholding a Hold rating. This presents a more restrained view, with analysts pointing to near-term risks and a less aggressive outlook compared to the more bullish peers. Among neutral and hold ratings, reservations remain around whether recent valuation gains are sustainable and if upside is fully priced in at current levels.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!LSE:NXT Community Fair Values as at Nov 2025

What's in the News

NEXT plc has raised its full-year 2025/2026 earnings guidance. The company now forecasts Total Group sales of £6,870 million, up from the previous expectation of £6,720 million. The company has announced a planned special dividend of approximately £3.10 per share to be distributed at the end of January 2026, provided there are no acquisitions or additional share buybacks before that time. NEXT will declare an interim ordinary dividend of 87 pence per share for the year ending January 2026. Shares will trade ex-dividend starting 4 December 2025, with payment due on 5 January 2026. Share repurchases have commenced following authorization at the 2025 Annual General Meeting. NEXT is approved to buy back up to 18,467,000 shares, equating to 14.99% of its issued share capital. The program will continue until the next AGM or August 15, 2026, whichever comes first.

Story Continues

How This Changes the Fair Value For NEXT

The Fair Value Estimate has increased from £129.56 to £138.64, reflecting a modest improvement in the company’s underlying valuation. The Discount Rate has risen slightly from 8.75% to 9.07%, indicating a marginally higher required rate of return by analysts. The Revenue Growth Forecast has improved, moving from 5.47% to 6.07%, suggesting more optimistic expectations for top-line expansion. The Net Profit Margin Projection has edged up from 12.40% to 12.48%, representing a minor enhancement in profitability assumptions. The Future P/E Ratio has increased from 20.94x to 22.07x, indicating slightly higher anticipated earnings multiples for NEXT.

🔔 Never Miss an Update: Follow The Narrative

Narratives offer a smarter, story-driven approach to investing. They connect an investor’s perspective on a company with hard data such as fair value, future growth, and profit margins. Narratives on Simply Wall St’s Community help you follow a company’s journey, link forecasts to valuation, and compare Fair Value to Price when considering investment decisions. They update automatically as new information is released, making them an easy and accessible tool used by millions.

Discover the story behind NEXT’s outlook by reading the full Narrative on Simply Wall St and stay updated on:

How strategic international expansion and AI investments are expected to drive revenue and resilience in the context of inflation. The effect of technology and warehouse automation on net margins and long-term earnings growth. Risks related to retail sales, new store profitability, and operational efficiency as NEXT continues to evolve.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NXT.L.

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