Moneysupermarket.com (LSE:MONY) Group PLC’s shares have been rattled by a double downgrade by UBS sending shares 4.4% lower at 264.40p.
The Swiss bank cited four main reasons for the move to sell from buy:
1) with shares up around 45% year-to-date, the group is now trading at a premium to other online marketplace peers, after adjusting for medium term growth expectations;
2) it does not expect energy switching volumes to recover to their prior peak;
3) it sees downside risks to consensus 8% revenue growth in 2024 given tough comparatives in insurance and soft trends in money;
4) it believes long term profit growth (exenergy) is likely to be limited.
The broker also cut its price target to 260p from 275p.