Daily Management Review

Barclays Thinks Zoopla’s Evaluations Are Hiked Up


04/22/2016


According to Barclays, Zoopla has over weighed itself.



Zoopla’s evaluation was downgraded by Barclays, whereby the latter termed to the former “equalweight” as oppose to “overweight” evaluation status. However, Barclays also lifted “the price target to 295p from 270p” as it says Zoopla’s “core property” service evaluations are “up with events”.
 
Barclays still finds “an attractive long-term story”, while another lift on share price in the near future becomes “overly-optimistic assumptions on synergies”. The “trading update” of Zoopla convinced Barclays of the “positive trends” that is driving “uSwitch” currently. Moreover, the acquisition of the “Property Software Group” only confirms the “exciting long term vision” that management possesses.
 
Given the wide spread upgrades to uSwitch, the near future objective “returns to Property Services”, thus retaining the driving force.
“Here we have cut underlying numbers and we anticipate both 1H and FY16 results to show only low single digit average revenue per agent growth, a reminder of the lack of pricing power for a battling no.2.”
 
So far, Barclays has taken into consideration the “most likely outcome” of Zoopla throughout the year of 2017 for it is going to be another year, wherein Zoopla will face “very little ARPA growth”, besides will be able to recover “only a modest” amount by agents. Likewise, Barclays say that the “valuation of around 17x 2017E earnings” “on the core Property Services business” without the deduction of “interest, taxes, depreciation and amortisation” is “up with the events”.
 
References:
http://www.digitallook.com/







Science & Technology

Five loudest data leaks

Airbus announces Moon exploration competition

Former Head Of Google China Thinks Funding In AI Should Be Doubled By US

Germany Introduces The First Ever Train To Run On 100% Hydrogen

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

Fuchsia will kill Android by 2023: Top 5 facts about the new OS

New Study Finds Goats Interact More With Happy People

More than 32 thousand "smart" houses under threat of hacker attack

Internet addiction and children: Global plague

Apple takes up to develop Apple Watch for health monitoring

World Politics

World & Politics

Cyprus Cobalt Air stopped flights

Transparency International: Europe should stop selling citizenships

Turkey: We are not going to discuss borrowing from IMF anymore

Trump in your mobile phone: US is going to test Presidential Alert system

European automakers warn of consequences of tight emission controls

IATA: EU-UK flights can be cancelled due to Brexit disagreements

Ex-Brexit Minister Said A ‘Reset’ Is Needed For Brexit Talks

10 countries with the best healthcare systems