RBC Capital cuts target price on Warpaint
By Abigail Townsend
Date: Tuesday 07 Oct 2025
(Sharecast News) - RBC Capital Markets has more than halved its target price for Warpaint London, after the AIM-listed cosmetics firm cut its full-year guidance.
The broker said it had reset its 2025 forecasts following Warpaint's disappointing interim results, published last month. It now expects adjusted EBITDA of £24.4m on revenues of £107.8m.
It also cut its target price for the company, which owns W7, Technic and Dirty Works, among other brands, to 440p from 700p.
But it retained its 'outperform' rating.
RBC said: "The unexpected loss of a key Technic customer to administration, changing customer buyer patterns, weakening sentiment and dollar volatility are driving a more conservative outlook than we previously expected."
It concluded: "We believe W7L's medium-term strategy remains intact, despite these near-term challenges.
"Our revised 440p price target reflects a multiple of 12.5x 2026 EV/adjusted EBITDA.
"While investors may pause to re-assess growth prospects in these more uncertain markets, we believe the current trading at 6x EV/adjusted EBITDA is overdone and maintain an 'outperform' rating."
As at 1400 BST, shares in Warpaint were off 2% at 216p.
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