SRH AlsterResearch AG Initiation: Scout24 - Improved margins become visible

• Scout24 AG (Initiation), Media / Internet
  MCap EUR 6.75bn; BUY, PT EUR 72.00 (upside 14%)
• Link: Scout24 AG_initiation

 

Scout24 reported in-line 2020 results, with both the top line and operating EBITDA meeting updated guidance. Amid the lockdown-related uncertainties, the company could not provide quantitative guidance for 2021. Nevertheless, it reiterated its segmental targets for 2021 of mid-single-digit to high single-digit growth in residential RE, slight growth in business RE and declining to flat yoy revenues in the media and other units. The group is to provide its 2021 profit guidance along with its 2020 annual report on 25 March. Scout24 operates in a resilient market. While many sectors are suffering from the Covid-crisis, the real estate market is once again benefiting from rising asset prices. In addition, the topic of working from home and the associated need for more living space in urban areas is taking on a new significance. Based on DCF valuation and Peer analysis 21E, we start coverage with a BUY recommendation and PT of EUR 72.00.

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