Citi rates Scout24 'buy' on strong core business, diversification opportunity

Scout24 SE

07/07/2023 13:38

** Citigroup initiates Scout24  G24n.DE  with a "buy" rating
and a PT of EUR 70.5, citing the German online property
platform's strong core business and opportunity to diversify its
revenues
    ** Citi expects the group to grow its core subscription
business faster than consensus expects, supported by its leading
market position and +2-3% yearly growth in the number of agents
    ** On the company's 2026 plan to diversify revenue streams,
the broker flags a significant opportunity to monetise private
subscriptions and landlords
    ** In its "bull" case, Citi sees additional upside of EUR
16.3 to the PT if landlord monetisation materialises
    ** It adds the German housing market, with 51% rental and
49% ownership, is conducive for Scout24's business as its
customers are more exposed to the less volatile rental market
    ** "Underpinning this medium term, the German housing market
has a shortage of supply with no clear medium-term fix," it says
    ** Out of 18 analysts that cover Scout24, 14 rate the stock
"strong buy"/"buy" and ​four "hold" - Refinitiv data
    ** The stock is up 20% YTD

 (Reporting by Amir Orusov)
 ((Amir.orusov@thomsonreuters.com))