Moonpig Group – pre-AGM Trading Update should help undervalued group’s shares, now 257p, to move a lot higher
Mark Watson-Mitchell - 14.09.2026
We created the online card and gifting market
and we continue to define where it goes next.
Look out on Wednesday morning (15th September) for the pre-AGM Trading Update being issued by Moonpig Group (LON:MOON), the leading online greeting card and gifting platform in the UK and the Netherlands.
The single cards market is large and continues to grow steadily, driven primarily by increases in average selling price.
And that is just what Moonpig reported for its last trading year to end-April.
The £753m-capitalised group has all the characteristics of a platform business – loyal customer cohorts, clear online market leadership, structurally high profitability and consistently strong free cash flow.
Its shares at 257p are totally under-rated, in my view, so I look forward to comments ahead of the AGM that will help to push them back up through the 300p barrier in due course.
The Business
Moonpig Group is a leading online greeting cards and gifting platform, comprising the Moonpig, Red Letter Days and Buyagift brands in the UK and the Greetz brand in the Netherlands.
The business is the online market leader in cards in both of its markets and is also the UK market leader in gift experiences.
Its leading customer proposition includes an extensive range of cards, a curated range of gifts, personalisation features and next-day delivery offering.
The Group offers its products through its proprietary technology platforms and apps, which utilise its unique data science capabilities to optimise and personalise the customer experience and provide scalability.
The Company's group cards feature allows its customers to digitally collect messages from colleagues, family and friends in a single card.
The Moonpig brand is an online destination for all its customers' gifting needs, offering flowers, chocolates, alcohol, balloons and others.
Alongside cards, the Greetz brand offers flowers and gifts, such as chocolate, balloons and beverages.
The Company declares that it has 12.3m active customers, with 2.92 orders per active customer and an average order value of £9.32 – all helping to underpin the Group’s growth, profitability and cash generation.
The 2026 Final Results
On 25th June, Moonpig reported a strong financial year to end-April, with revenue increasing by 6.5% to £373.0m and adjusted earnings per share growing by 19.5% to 18.0p.
It also saw an 8.1% rise in adjusted EBITDA to £104.6m, with a margin of 28.0%, and free cash flow increased by 11.2% to £73.5m.
The Board proposed a 25% increase in the total dividend to 3.75p per share, and the company completed £60m in share buybacks, with plans for up to £65m in FY27.
The Company declared that its trading for FY27 is in line with expectations.
Management Comment
CEO Catherine Faiers stated that:
"These results demonstrate the strength of Moonpig Group's brands, customer proposition and business model.
The Group delivered good growth in revenue, profitability and cash generation whilst continuing to invest in the capabilities to support our future ambition.
This performance reflects the hard work, commitment and execution of our outstanding teams across the business.
Since joining the business in March, my conviction in the opportunities ahead has only grown.
At its heart, Moonpig Group helps people to build and maintain meaningful relationships and in an increasingly digital world, that role feels more relevant than ever.
What excites me most is the combination of trusted brands, rich proprietary customer data and differentiated operational capabilities that have been built over many years.
Together they give us a more powerful foundation to deepen customer relationships, unlock more value across the Group and deliver attractive returns for shareholders over the long term."
In the latest Report & Accounts, Non-Executive Chair, Kate Swann commented upon the Group’s Outlook by stating that:
“The Board is encouraged by the Group’s start to the new financial year and remains confident in its ability to deliver long-term value for shareholders.
The Board believes that the Group remains well positioned to increase its market share and lead the continued structural shift from offline to online.”
The Equity
There are some 291.15m shares in issue.
The larger holders include FIL (Fidelity International) (12.07%), Liontrust Investment Partners (9.97%), Baillie Gifford (9.77%), JPMorgan Asset Management Holdings Inc. (5.01%), BlackRock, Inc. (5.00%) and Ameriprise (Columbia Threadneedle) (4.33%).
Total Directors’ shareholdings were 1.41% of the equity.
Broker Views
From a consensus of the estimates of ten analysts following the group, the average group revenue expected for the current year to end-April 2027 is £395.4m, with adjusted pre-tax profits of £76.7m, generating 19.3p per share in earnings and paying a 4.3p dividend.
For 2028, revenue of £419.9m is estimated, with £82.3m profits, 22.3p of earnings and a 5.2p dividend.
The 2029 year could see £447.3m sales, £89.4m profits, 26.0p earnings and a 6.3p per share dividend.
Of the ten analysts making up the consensus, seven call the shares as a Buy, two to Outperform, and the tenth as a Hold.
The average Target Price is 302p, with the Lowest at 278p and the Highest at 335p.
Berenberg Bank has a Buy note out with a 300p Target Price, Canaccord Genuity Capital Markets has a Buy with a 300p TP, Deutsche says Hold, while Jefferies has a Buy with a 315p TP.
Analyst Matthew McEachran, at Singer Capital Markets, rates the group’s shares as a Buy, with a 335p Target Price.
For the current year he looks for £403.7m sales, £81.6m profits, 19.4p of earnings and a 4.85p dividend per share.
He goes for 2028 revenues of £434.6m, with £86.8m profit, 21.9p per share earnings and a 5.49p dividend.
My View
This is a very inexpensive example of annual recurring revenue, not much spend per customer although increasing nevertheless each year, but from a massive volume of buyers.
I like this business and consider that its shares are under-rated at just 257p on 13 times current year and 11.8 prospective earnings.
An early price objective has to be over the 300p barrier.
(Profile 23.06.26 @ 215p set a Target Price of 260p)
Comments