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(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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