Swisscom profit drops 23% as Vodafone Italia costs weigh on results
Investing.com - Goldman Sachs has initiated coverage on SMG Swiss Marketplace (SMG:SW) with a Neutral rating and a price target of CHF55.00, according to a research note released Thursday.
The investment bank identifies SMG as the dominant player in Swiss online classifieds, operating platforms across Real Estate, Automotive, and General Marketplaces segments with market shares of approximately 80% in Real Estate and 90% in both Automotive and General Marketplaces.
Goldman Sachs notes that SMG was formed from the 2021 merger of the top two players in the Swiss market, creating a company that receives significantly more monthly visits than competitors—approximately 8 times more in Real Estate, 29 times more in Automotive, and 18 times more in General Marketplaces than their nearest competitors.
The research highlights strong monetization opportunities in the Swiss online classifieds market, supported by a favorable economic environment and relatively low take rates of 3% of real estate agents’ commission pool and car dealers’ gross profit pool, compared to 5%-11% in benchmark markets.
According to projections cited by SMG from a leading consulting company, the Swiss real estate and automotive online classifieds markets are expected to grow at compound annual growth rates of 12% and 11% respectively from 2024 to 2029, following 14% and 9% growth rates from 2022 to 2024.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.