Ramsdens Holdings - broker initiates cover with a 480p Buy Target Price

Mark Watson-Mitchell - 15.12.2025

Analysts Rahim Karim and Jens Erhenberg, at Cavendish Capital Markets, have today initiated their research coverage on Ramsdens Holdings (LON:RFX), with a weighty Target Price of 480p for the group's shares.

They noted that:

"Since its IPO in 2017, Ramsdens has delivered consistent growth and established itself as a leading player in the UK market.

Although its exposure to the gold price creates an element of variability in the group’s earnings, our forecasts are conservatively struck in the context of prevailing spot prices, providing upside risks to our medium-term forecasts.

We believe the group will deliver attractive rates of growth over the forecast horizon.

Continued growth in its retail store base, alongside a growing online presence, should support attractive growth in both its pawnbroking and retail jewellery businesses notwithstanding the current high gold price.

We initiate with a Buy rating and a 480p target price."

They concluded their comments by noting that:

"Given the lack of listed peers in the UK and the diversity in the group’s revenue streams, we believe that a sum-of-the parts approach represents the fairest way of valuing Ramsdens.

On this basis we see the shares being worth 480p, implying a potential total shareholder return of 38%.

Should current gold prices be sustained we see material upside risk to this valuation, a view also supported by the strategic value of the UK pawnbroking sector.

The company are due to report FY25 results on 14 January 2026."

My View

I like Ramsdens, its shares at 357.50p, offer attractive upside prospects.