Shore Capital Markets has reasserted its confidence in FTSE 250-listed MoneySuperMarket.com, maintaining its 'buy' recommendation for the price-comparison website.
Analysts were impressed with recent financial performance showing a robust trading picture, notably with year-over-year revenue gains of 14% in the third quarter and 12% over the nine months ending in September.
Key to the company's success was the significant growth in its insurance and travel sectors, which have been instrumental in counterbalancing the more challenging conditions faced in the money and home services verticals, reckoned ShoreCap.
This robust performance is testament to the resilience of MoneySuperMarket's business model and its strategic progress, as noted by ShoreCap.
The broker noted that MoneySuperMarket has a solid track record in consumer savings, with an estimated total of around £1.3 billion saved during the first half of the fiscal year 2023.
“We also regard the strength of the MoneySuperMarket and (content rich) MoneySavingExpert brands in a market that has coalesced around four principal players as a competitive strength which is further complemented by its cash-back and B2B offerings,” said analysts.
ShoreCap predicts 41% aggregate earnings-per-share growth over three years for MoneySuperMarket, “a prospect that… is not, in our view, reflected in its current stock valuation” of 266p as of Friday, 15 December.