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/
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/
