Focusrite – is it time to skip to the beat ahead of next week’s AGM, shares now 240p and heading to over 300p

Mark Watson-Mitchell - 31.07.2026

The audio products group Focusrite (LON:TUNE) is due to hold its 2026 AGM next Tuesday, 4^th August,

The group is well-known for supplying hardware and software used by professional and amateur musicians and the entertainment industry,

It is a global leader in the growing audio technology market, uniquely positioned to drive margin-accretive growth, thanks to its differentiated portfolio of category-leading brands, its brilliant people and its end-to-end ecosystem of unrivalled products and services.

The company leads the world in audio interfacing technology – more musicians record through Focusrite than any other brand.

The shares of the £141m-capitalised group, which are currently at 240p, are just 15p short of their 2026 High achieved in January this year, and are trading on 12.9 times current year earnings, while I am looking for that to fall to just 10.5 times next year.

They offer an attractive upside to investors at around these levels, with 300p being an easy price objective.

The Business

The High Wycombe-based audio technology business develops and markets hardware and software products.

The company trades under 13 brands, including Focusrite, Focusrite Pro, Novation, Ampify, ADAM Audio, Martin Audio, Optimal Audio, Linea Research Sequential, Oberheim, Sonnox, OutBoard and TiMax.

With a high-quality reputation and a rich heritage spanning decades, its brands are category leaders in the music-making and audio reproduction industries.

Focusrite and Focusrite Pro offer audio interfaces and other products for recording musicians, producers and professional audio facilities.

Novation and Ampify products are used in the creation of electronic music, from synthesisers and groove boxes to industry-shaping controllers and inspirational music-making apps.

ADAM Audio studio monitors have earned a worldwide reputation based on technological innovation in the field of studio loudspeaker technology. 

Martin Audio designs and manufactures performance-ready systems across the spectrum of sound reinforcement applications.

Linea Research designs, develops, manufactures and sells market-innovative professional audio equipment globally. 

Sequential designs and manufactures high-end analogue synthesisers under the Sequential and Oberheim brands.

Sonnox is a leading designer of innovative, high-quality, award-winning audio processing software plug-ins for professional audio engineers.

TiMax specialises in innovative immersive audio and show control technologies.

OutBoard manufactures and sells industry-standard rigging control products for live events, together with enterprise-level safety testing, preparation and quality management for global rental companies and venues.

The group has offices in four continents and a global customer base with a distribution network covering approximately 240 territories.

2026 Final Results

On Monday, 29^th June, the group reported a resilient performance for the 18 months to end-February, with pro-forma revenue increasing by 1.3% to £164.6m and adjusted EBITDA rising by 5.7% to £24.7m, driven by disciplined pricing and supply chain management.

The company saw a gross margin increase of 1.7% to 45.1%, and net debt substantially reduced by £9.3m to £8.6m.

It highlighted the development of a new technology platform with proprietary silicon, enhancing its competitive positioning for future growth.

The business anticipates unchanged Board expectations for the year to February 2027, with trading in the first quarter ahead of the prior year.

Management Comment

CEO Tim Carroll stated that:

"The Group delivered a resilient set of results for the 18-month period to 28 February 2026, our new financial year end. I'd like to recognise the efforts of everyone across the Group on this performance, which reflects the benefits of disciplined pricing, supply chain management and a growing direct-to-consumer sales channel.

Adjusted EBITDA for the pro-forma 12-month period to February 2026 increased to £24.7 million from £23.3 million, demonstrating the Group's ability to grow profitability despite a challenging macro-economic backdrop characterised by tariff instability, geopolitical pressures and subdued consumer confidence in several key markets.

Both divisions contributed to this performance, with Content Creation returning to organic constant currency growth of 3.6% and Audio Reproduction broadly stable. 

Our businesses are market-leading, and we have a differentiated, diversified portfolio of unrivalled and world-leading brands that are loved by our passionate customers.

Innovation is central to our growth strategy and we are excited to reveal our new technology platform utilising our proprietary silicon chip which underpins our confidence in the Group's long-term competitive positioning.

Trading in the first quarter has been ahead of the prior year, with underlying demand remaining healthy across both Content Creation and Audio Reproduction. 

Whilst remaining mindful of the broader macro-economic environment, the Board expectations for the year to 28 February 2027 remain unchanged, and the Group enters the new financial year with improving operational momentum, a strengthened product portfolio and a growing direct-to-consumer presence that continues to support both revenue growth and margin progression."

The Equity

There are some 59.21m shares in issue.

Larger holders include Liontrust Investment Partners (13.76%), Harwood Capital (5.07%), abrdn Investment Management (4.56%), Raymond James Wealth Management Ltd. (Investment Management) (4.44%), Sanford DeLand Asset Management (4.29%), Canaccord Genuity Wealth (4.16%), Investec Wealth & Investment (3.53%), Stancroft Trust Ltd. (3.22%), River Global Investors (2.20%), and Royal London Asset Management (1.69%).       

Broker’s Views

Analysts Milo Bussell and Kimberley Carstens, at Cavendish Capital Markets, have a Buy note out on the group’s shares, with a 340p Target Price.

They state that Focusrite appears good value, relative to both its peers and historic levels.

For the current year to end-February 2027, they estimate £170.6m (£164.6m) of revenues, with adjusted pre-tax profits of £14.2m (£12.5m), lifting earnings up to 17.8p (15.5p) and paying an increased dividend of 6.9p (6.7p) per share.

For the 2028 year, they see £179.1m sales, £18.0m profits, 22.7p earnings and a 7.2p dividend.

The year to end-February 2029, the analysts reckon, could see £188.0m revenues, £20.8m profits, 26.2p of earnings and a dividend of 8.2p per share.

Over at Singer Capital Markets, their analyst Matthew McEachran also rates the company’s shares as a Buy but with a recently increased Target Price of 395p.

For this year he goes for £173.7m sales, £14.8m profits, 18.6p earnings and a 7.98p dividend.

His estimates for 2028 are for £184.1m revenues, £18.2m profits, 22.9p earnings and a dividend of 9.81p per share.

McEachran is obviously a lot more enthusiastic about the group’s prospects than Cavendish.

Analysts at Berenberg Bank have the shares as a Buy, with a 255p Target Price.

My View

Focusrite is certainly well-positioned to capitalise on the growing demands for content creation and audio reproduction.

Its global spread is impressive, and it is a sector leader in a $6.3bn marketplace.

I see the shares, now at 240p, moving ahead to break the 300p level very soon.

(Profile 31.07.26 @ 240p set a Target Price of 300p)

Global leader