Jefferies cuts Hemnet on 'too steep' recovery hopes, shares fall

Adevinta ASA

07/09/2023 09:13

** Jefferies cuts Hemnet Group  HEM.ST  to "underperform"
from "hold", as it expects the Swedish online property platform
to struggle to meet the market's recovery expectations for 2024
    ** It says Hemnet's exposure to Swedish property cycle is
"the single wrinkle in its risk profile", but adds the stock
price and consensus are discounting a too steep recovery
    ** The broker cuts its expectations for 2023/2024 EBITDA,
bringing the 2024 estimate around 7% below consensus
    ** Jefferies expects Hemnet's listing growth to rebound in
Q4 2023, seeing 6% growth in 2024 and listings at usual levels
by 2025
    ** "Our issue with the Hemnet equity here is neither
structural (Hemnet remains in a pre-eminent market position in a
high quality market) nor related to strategy (product focus and
execution is on point)" - Jefferies
    ** Its top picks among online classifieds are Scout24
 G24n.DE  and Auto Trader  AUTOA.L , closely followed by
Adevinta  ADEA.OL  and Schibsted  SCHA.OL  (all "buy")
    ** The Hemnet shares are down 6.4%

 (Reporting By Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))