Foxtons interim statement buy trigger On April 17th, we published a buy note on Foxtons, highlighting the superlative returns since the float, and the subsequent tail-off since the March results. Shares were then at 334p, and we took the view that if the stock could regain the rising 100-day moving average at 349p, we would see a quick return to 400p and above. Shares continued to drift down to 320p, but this morning, Foxtons has released an interim statement from Jan 1st 2014 to date, which reveals Q1 property sales commissions have rocketed 41.1% to £17.6m, with group turnover of £34.1m, an increase of 19.2%. Group EBITDA increased by 40% to £10.9m as a result of strong revenue growth and the substantial operational leverage inherent in Foxtons centralised business model. With new branches at Greenwich, Beckenham and Earls Court, (all performing in line with expectations), and four more planned this year, the agent is continuing to create strong cash flow and remains debt free. This in our view is what the market has been waiting for to bid the stock higher. We reiterate our buy rating for the stock, and expect Foxtons to regain the rising 100-day average, now at 352p before a return to 400p plus. #foxtons #london #ipo #EBITDA
Posted on: Tue, 29 Apr 2014 07:50:33 +0000
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