Shearwater Group - doubled profits and increased sales orders, shares 72p, SQC TP 87p
Mark Watson-Mitchell - 26.10.2026
Watch out tomorrow, Tuesday 27th October, for the Finals from the Shearwater Group (LON:SWG).
Analysts Kimberley Carstens and Edward Stacey, at Cavendish Capital Markets a week ago declared that:
"Shearwater is a company with a unique and differentiated set of capabilities in critical cyber-security applications, and a global blue-chip customer base: Driven by continually escalating tactics used by cybercrime groups, growing complexity in the threat environment, and increasing regulatory requirements and standards, demand for cyber security providers remains highly robust.
Shearwater’s differentiation lies in specialism across highly demanding critical infrastructure organisations such as global telecoms, financial institutions, and – increasingly – UK government departments, and within advanced technologies such as forensic network monitoring and quantum-based technologies."
They are looking for tomorrow's results to end-June to report doubled profits at £1.2m (£0.6m), with a 63% increase in earnings per share at 4.9p (3.0p).
For the current year to end-June 2027, their estimates are for £38.0m of sales, to produce at least £1.5m adjusted pre-tax profits, with a 20% increase in earnings at 5.9p per share.
The analysts have fixed a 90p Target Price on the group's shares, now 72p.
My View
Cyber attacks are big news currently, which will no doubt help to create further business for this £17.2m-capitalised business.
I am confident in my Target Price of 87p set just a week ago.
(Profile 14.04.20 @ 245p set a Target Price of 310p)
(Profile 23.03.22 @ 118p set a Target Price of 145p)
(Profile 06.11.23 @ 35p set a Target Price of 45p*)
(Profile 25.07.24 @ 45p set a Target Price of 56p*)
(Profile 11.11.25 @ 58p set a Target Price of 72.50p*)
(Profile 20.10.26 @ 69.50p set a Target Price of 87p)
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