Scout24 slips after MS cuts to 'equal-weight' on competitor expansion risk

Scout24 SE

26/01/2024 10:04

** Shares in Scout24  G24n.DE  slip around 2% after Morgan
Stanley cut the German property classifieds platform to
"equal-weight" from "overweight", citing uncertainty on margin
mix from the normalizing market and competitor CoStar's entry to
Europe
    ** In a tougher 2023 market, Scout24's diversified product
mix was useful in taking market share, however in 2024 a
normalizing market environment creates uncertainty around margin
mix, the broker says
    ** Due to this and the expected CMD message around certain
product lines such as the landlord service, MS lowers its EBITDA
expectations 0-4%, and says it sees consensus expectations as
"largely ok" for 2024-25
    ** Another risk is CoStar's potential further expansion in
Europe after their entry to the UK which remains largely
uncertain, MS says
    ** "Despite our cut to equal-weight, we continue to see
Scout24 as the most innovative classifieds player in our
coverage" – MS
    ** Out of 18 analysts that cover Scout24, 12 rate the stock
"strong buy" or "buy,"​ six rate it "hold" and no analysts rate
the stock "strong sell" or "sell"


 (Reporting by Eva Orsolya Papp)
 ((Evaorsolya.papp@thomsonreuters.com))