Gateley Holdings plc Initiation note 17 September 2026

We initiate coverage of Gateley Holdings Plc with a fair value estimate of £1.50 per share. This note highlights Gateley as a well-managed professional services group with an unbroken revenue growth record achieved organically and via acquisition, growing its consultancy business alongside core legal services. Recent share price weakness has materially depressed valuation multiples, which we see as a steep overreaction to margin softness and the emergence of AI. Investors should take note of a strategy to drive operating margins to a 13.5% target and the fact that the stock is trading on PE and EBITDA ratings of less than 5x, standing at a 50% discount to peers. Our Fair Value of 150p compares to a current share price of just 60p.