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Zoopla worth holding despite housing slowdown

Analyst Chris Collett says the medium term outlook for the group is positive as it has a broad range of assets, and growth in its price comparison business.

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Zoopla gets 45mln visits to its website per month

Deutsche Bank reckons investors should hold their shares in property portal Zoopla Property Group plc (LON:ZPLA) after it reported a surge in annual profits yesterday despite a weaker housing market.

Analyst Chris Collett says the medium term outlook for the group is positive as it has a broad range of assets, and growth in its price comparison business.

These assets include traditional listing software, but also estate agent branch software, website design, referral fee generation.

Yesterday, the group reported pre-tax profit of £46.2mln versus £33.6mln the year before, on revenues, which were at £197.7mln versus £107.6mln in 2015.

The recently acquired division uSwitch performed very strongly, reporting revenues of £111mln, while traffic to the Zoopla site showed no sign of abating despite post Brexit housing worries, with visits up 2% on the year- to 45mln visits per month.

Deutsche has lifted its revenue estimates for 2017 up by 1% and underlying earnings (EBITDA) by 2% on the back of strong performance of the price comparison business.

It also shifts the target price to 315p from 300p currently.

Barclays also looked at the stock today and has repeated an 'overweight' rating and 370p price target.

Quick facts: Zoopla

Price: 0 0

LSE:ZPLA
Market: LSE
Market Cap: £0.00
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