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On Wednesday, Scout24 AG (G24:GR) (OTC: SCOTF) stock received an upgrade from JPMorgan from a Neutral to an Overweight rating, accompanied by a significant increase in the price target from EUR67.00 to EUR80.00.
The upgrade is attributed to the company's strong positioning in the European internet sector and its potential for earnings momentum which is expected to be less affected by economic cycles.
The analyst from JPMorgan highlighted the company's likelihood to benefit from new product launches in addition to its robust core business. This is especially relevant as the market environment is anticipated to favor companies with resilient earnings.
The analyst's projections show a +3%/+4% upside to Scout24's EBITDA for the fiscal years 2024 and 2025 compared to the consensus, which could provide reassurance amidst growing concerns about the competitive landscape in Europe.
Furthermore, the analyst expressed reduced concern regarding the potential market entry of CoStar into Germany. The expectation is that CoStar may concentrate more on the UK market, which could leave Scout24 less exposed to competitive pressures than previously thought.
The positive outlook for Scout24 is based on the company's solid performance and strategic initiatives that are expected to drive growth. The analyst's comments suggest that the company is well-positioned to navigate the challenges in the European market and could see an improvement in its financial metrics as a result.
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