MS sees leaders in European classifieds to keep outpacing peers

Adevinta ASA

17/05/2023 11:03

** Morgan Stanley says market leaders in the European
classifieds landscape continue to widen the gap to challengers
with "more runway for further monetisation"
    ** "Leaders in smaller countries generate stronger network
effects leading to higher per capita monetisation, compared to
their peers in larger countries," the brokerage says, having
ranked about 300 sites on per-capita traffic
    ** It says smaller-country-leaders should trade at a premium
to peers, but since most such assets belong to conglomerates the
premium rarely materialises
    ** The brokerage says monetisation differences between
portals can be tracked to relative market positioning measured
by traffic
    ** "In most scenarios, we believe market leaders will
continue to outpace challengers," Morgan Stanley adds
    ** The brokerage upgrades Norway's Adevinta  ADEA.OL  to
"overweight" from "equal-weight," saying an expanding traffic
advantage of its mobile.de business compared to peers means a
higher probability of success in launching new services 
    ** It also likes Germany's Scout24  G24n.DE  ("overweight"),
while it finds that Schibsted's  SCHA.OL  ("equal-weight")
Norwegian marketplace FINN is the most dominant and best
monetised site in Europe

 (Reporting by Greta Rosen Fondahn)
 ((Greta.RosenFondahn@thomsonreuters.com))