Anika Begay
On Wednesday, Scout24 AG (G24:GR) (OTC: SCOTF) received a rating upgrade from Neutral to Overweight from JPMorgan, accompanied by a significant price target increase from EUR 67.00 to EUR 80.00.
The upgrade is attributed to the company’s strong positioning in the European Internet sector and its potential for earnings momentum, which is expected to be less influenced by economic cycles.
The JPMorgan analyst highlighted the likelihood that the company will benefit from new product launches in addition to its strong core business. This is particularly relevant as the market environment is expected to favor companies with resilient earnings.
Analysts are projecting Scout24’s EBITDA for fiscal years 2024 and 2025 to be +3%/+4% above consensus, which could provide some reassurance amid growing concerns about the competitive landscape in Europe.
Additionally, the analyst expressed little concern about CoStar’s potential entry into the German market. The expectation is that CoStar may focus more on the UK market, which could leave Scout24 less exposed to competitive pressures than previously thought.
The positive outlook for Scout24 is based on the company’s solid performance and strategic initiatives that should drive growth. The analyst’s comments suggest that the company is well positioned to address the challenges of the European market and could see an improvement in its financial metrics as a result.
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