Investors’ Chronicle, the Financial Times group magazine for private investors, says Zoopla’s acquisition of price comparison site uSwitch is ‘a creative response’ to the loss of agent members it suffered following the creation of OnTheMarket.
“We were already of the view that, despite the early churn and dent in this year's forecasts, Agents Mutual posed only a limited existential threat to the property listings group” according to an editorial in this week’s publication.
“The decision to buy uSwitch helps move the narrative on further. It was also roundly welcomed by the market, which cheered the shares up to Numis's 215p target price on the day of the announcement. That's 26 times the broker's forward earnings forecasts - a decent discount to Rightmove, which seems fair. Hold” it advises.
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