Analysts at Jefferies yesterday started coverage of Foxtons shares.

It gave the shares a ‘hold’ rating with a price target of 110p, indicating a potential decrease of 3.93% from yesterday’s starting price of 114.5p.

Jefferies warned that Foxtons’ fortunes “are explicitly linked to the strength or weakness of the London housing market”, and forecast that its transactions will be 10% down this year and stay flat next year. However, Jefferies also said that Foxtons is “doing many things right”.

The firm itself last month said that revenues from sales were down by one-third in the three months to the end of September.

Foxtons has 275,724,000 shares in issue which at 114.5p give the firm a market capitalisation of £315.70m.

Over the last 12 months, the share price has fallen by 37.33% from 182.7p a year ago.

However, recently the shares have been rising after dipping last month below 100p.

Yesterday, despite Jefferies’ note to investors, Foxtons shares finished up at 117.25p.