Big boost for Zoopla shares after bank lifts its rating

Shares in Zoopla shot up yesterday after Barclays lifted its recommendation from equal weight to overweight.

The recommendation reversed Barclays decision to downgrade Zoopla in April.

The bank said then that it anticipated this year’s results to “show only low single digit average revenue per agent growth, a reminder of the lack of pricing power for a battling no. 2”.

However, yesterday Barclays said its upgrade was because it expected strong trading of Zoopla’s price comparison site, uSwitch, which it bought last year.

Barclays, which lifted the price target for shares to 335p, also cited Zoopla’s recent acquisition of the Property Software Group, and the potential to drive synergies between Zoopla’s different businesses.

Analysts at the bank did, however, note the risk to Zoopla of a weaker property market.

Zoopla shares finished the day yesterday at 329p after a rise of 7.5%.

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4 Comments

  1. LocalAgent201625

    Strange how a Zoopla article receives zero responses, had this been an OTM article the OTM followers would be all over it.

     

    Funny old world 🙂

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    1. PeeBee

      Now then, LA201625.

      OTM shares have zero value; aren’t tradeable and each AM Member only has one.

      Nowt really to talk about there.

      That aside – every word an “OTM follower” posted would have been shot down in a rain of virtual bullets.

      Walking full-on into the fire – my feeling for Zoopla – and Rightmove for that matter – are well documented here on EYE so I’ll not bore people again.

      OTM had – still has – the potential to make a serious difference… but without support that potential is all but unrealisable.

      Time will tell – unfortunately time stands still for no-one and has an annoying habit of running out.

      Some will be wishing that time away far more than others.

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      1. LocalAgent201625

        OTM will not make any impact the way it’s going and has shown it’s ambition by thinking a chain of 6 agents switching from Zoopla to OTM.

         

         

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        1. PeeBee

          Ahhh… but you’re forgetting the AWAY GOALS EFFECT, LA201625…

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