Shearwater – today’s results see broker increasing Target Price to 90p, shares now 58p

Mark Watson-Mitchell
1 day ago
2 min read

Mark Watson-Mitchell – 11.11.2025

Shearwater Group (LON:SWG), the cybersecurity, advisory and managed security services business, has this morning announced its Final Results for the 15-month period to end-June.

They showed revenues up from a restated £24.4m to £39.5m, with adjusted pre-tax profits of £0.6m (loss of £0.6m), lifting earnings per share six-fold to 3.0p.

The debt-free £13.8m-capitalised company held £5.1m in cash – which is a very impressive Buy signal as far as I can see.

CEO Phil Higgins stated that:

"The past 15 months have been a period of significant progress for Shearwater.

We have delivered strong revenue and EBITDA growth, maintained a robust balance sheet, and broadened our client base.

This growth reflects the investment we have made in the quality of our solutions, our people and the high regard in which each of the Shearwater Group companies is held.

The cybersecurity landscape continues to evolve rapidly, with threats becoming more frequent, more complex, and more damaging.

Against this backdrop, organisations are recognising the need to commit to investment in their defences.

This will create further opportunity for Shearwater Group and we look forward to FY26 and beyond with optimism."

Broker’s View

Analysts Kimberley Carstens and Edward Stacey, at Cavendish Capital Markets, in an in-depth note highlight the Group’s differentiation, diversification and demand.

Their FY26E estimates, as noted in my article yesterday, have been reiterated while stating that:

“Combined with a growing pipeline, strong cost management and growing expertise in next-generation cyber security technologies such as post-quantum cryptography, SWG is excellently positioned to benefit from an increasingly complex cyber threat environment for businesses and the public sector.

We lift our target price to 90p, equivalent to 0.4x FY26 sales and 15x FY26 adj EBIT, in line with peers.

Driven by continually escalating tactics used by cybercrime groups, growing complexity in the threat environment, and increasing regulatory requirements and standards, the demand for cyber security providers is highly robust.

Shearwater shares have performed well over the past six months (+71%); they remain modestly valued on a 0.2x FY26E EV/Sales multiple compared to UK-listed cyber peers trading at 1.5x Y1 EV/Sales.”

The brokers raised their Target Price for the group’s shares from 78p to 90p.

My View

These shares, now 58p, really are primed ready for an upward move.