Swiss bank UBS has upgraded its investment rating on Purplebricks, raising its price target and urging investors to buy.
In a note to clients, UBS said it was shifting its guidance from ‘neutral’ to ‘buy’ and was raising its price target for Purplebricks shares to 100p.
This is the latest in a series of advice notes over the years from UBS, often in response to its concerns over the agency’s international adventures which have now ended.
In March 2019 UBS cuts its price forecast for Purplebricks’ shares from 305p to 285p but then just two months later in May that lower figure was slashed to only 100p.
By July 2019 UBS advised that it saw Purplebricks growing market share in the UK to only 7.5 per cent by 2024 - actually well below the agency’s own prediction of 10 per cent.
UBS made clear in 2019 that it was concerned at Purplebricks’ activities in Australia and America; 18 months ago the bank forecast that the agency wouldn't break even down under until 2022 and suggested that the US operation would not see a profit until 2025.
Of course since then Purplebricks has closed all its international operations, including most recently Canada.
Earlier this month the company revealed its trading statement covering the first half of 2020, reflecting the problems caused by Coronavirus.
There was an operating loss of £9.4m - much higher than the £1.5m loss a year earlier. Revenue plummeted 10.7 per cent to £80.5m.
At the company's financial year end - so before the sale of its Canadian business last month - it had £31m on the balance sheet, compared with £62.8m a year earlier.
The sale of the Canadian business contributed £30.6m to the agency’s coffers and the firm told its shareholders “our exits from the Australian and US markets have allowed us to concentrate on our key operations.”
Swiss investment bank UBS has advised investors to sell their Purplebricks...
International investment bank UBS has double-downgraded Purplebricks from ‘buy’ to ‘sell’...
The investment bank UBS says it’s forecasting that Rightmove revenues will...
It's been another busy 24 hours for publicly-quoted estate agencies. Swiss investment...
The predictions game can be tricky. Sometimes you just don’t know...
Leading UK property auctioneer Bond Wolfe has broken through the £100...
Uncertainty triggered by the new Labour Government and taxation concerns that...
In today's rapidly evolving property market, the focus on reducing transaction...
.png)
An exciting new collaboration between TVPN, EstateApps and Paul Long is...
By Mike Bilboe, Face For Business Buying or selling a home can...
LSL Estate Agency Franchising is home to one of the UK’s...
.jpg){kind=logo}
B-hive Block Management Partners Celebrates Major Milestone With Over 100 Businesses...
.jpg)
Tell us a little bit about National Home Move. We are a...
If you’re thinking about becoming an Estate Agency franchise or converting...
Estate agents and lettings agents have a legal obligation to protect...
You don’t have to simply accept things as they are when...
From the uptick in house sales in January to a house price...
Happy birthday to us….and all members of the The ValPal Network! We...
With a combined value surpassing £7.4 trillion, the UK’s 29 million...
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
The benefits for letting agents to outsource their client accounting is...
When almost all agents and developers use the tried and tested formula...
I think we can all agree that the National Trading Standards...
.png)
As domestic battery storage systems become increasingly prevalent in UK homes,...
.png)
A team from The ValPal Network joined industry Facebook ads expert...
.png)
In this interview, Riccardo Dawson, Chief Operating Officer at Alto and...
%20(002).png)
In today's fast-paced and ever-evolving property industry, it’s essential that forward-thinking...
A client account is essential to your lettings business, but the...
As electric vehicles increasingly populate our roads and the necessity for...
As estate agents, it is important to make sure that your...
Estate agency has changed. No longer is it required to sit in...
Changes to consumer behaviour usually arrive in waves. Most of the...
At iamproperty we are excited to share the announcement of our...
It’s no secret – 2023 is a difficult year for the...
In an exclusive interview with Estate Agent Today, Simon Coaker, Sales &...
2023 has been coined as ‘the year of AI adoption’, and...
%20(002).jpg)
There are a few common questions that arise when the issue...
As a signage company we know we have a serious responsibility...
The Government’s mini budget on September 23 was anything but ‘mini’...
Agent websites have become more crucial than ever in attracting new...
.png)
Who are you and what does it say on...
Who are you and what does it say on...
Who are you and what does it say on...
Join the conversation
Jump to latest comment and add your reply
I called this right in 2014 when they first emerged, I have been consistent, correct and accurate.
UBS ought to be asked how 7.5% is going to be possible when the 10% prediction was supposed to have been achieved in 2016. ( 15,000 for 2014, 85,413 instruction for 2015 and 100,849 instructions – equivalent to 10% of all transactions for 2016)
The public are now familiar with the business model, the upsides and the down sides. Their potential contractors know the score too.
6 years in, everything is established and familiar so what is UBS predicting is going to change to take them from where they are now to where they're reckoning?
I'm not having a go at Purplebricks I am challenging the analysis which appears to be words with no support or substance. After 10 years of this nonsense I feel it is about time it stopped.
If anyone is thinking of using their money to buy Purple Bricks shares as an investment.........I have some VHS video recorders to sell at a reduced price and I’m hearing of a bridge in London that might be coming up for sale......get in quick!
That’s genuinely really funny!
This bullishness by UBS may be based on a prediction that, in a much tighter/harder market, with many possible forced sales, sellers will choose a low-cost route. They might, but it will definitely not be an upfront fee/guaranteed payment whether the home sells or not type offering. Sell.
Please login to comment