'Plenty of scope to create value' - JPM ups Adevinta to 'overweight'

Adevinta ASA

02/03/2023 11:28

** J.P.Morgan upgrades Norway-based digital marketplace
specialist Adevinta  ADEA.OL  to "overweight" from "neutral,"
saying the renewed leadership and improving market conditions
leave plenty of scope to create value 
    ** It highlights changes to the company's management
structure introduced by its new CEO Antoine Jouteau and Q4
results showing stronger pricing trends
    ** JPM says it expects Adevinta to further create value via
stronger focus on costs, continued portfolio optimization and
improved disclosure, which would lead to better predictability
of earnings 
    ** Moreover, it expects falling used car prices to boost
volumes, benefiting the group's Motors segment
    ** The brokerage notes, though, that to date Adevinta's
share price performance has been rather disappointing with
valuation discount to peers giving little to no credit for
potential performance opportunities 
    ** Hence, in JPM's view, a potential listing in
Amsterdam/Frankfurt would increase demand from index funds and
attract new shareholders
    ** Out of 20 analysts that cover the Adevinta stock, 12 rate
it "strong buy" or "buy", six rate it "hold", and two rate it
"sell"


($1 = 0.9410 euros)

 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))