Future PLC's (LSE:FUTR) first-half trading update was described by analysts as "encouraging" and "broadly reassuring" and the shares as "anomalously low".
The online publisher and price comparison site operator reported a return to organic revenue growth, following the continued improvement in revenue towards the end of its last financial year, driven by strong performances in Go.Compare (pictured), B2B and Magazines, offset by challenges in affiliate products and digital advertising due to macro uncertainties.
Website user trends have continued to stabilise, and implementation of management's Growth Acceleration Strategy (GAS) was said to be making progress.
Panmure Gordon analyst Jessica Pok said the stabilisation of audience trends and initial progress with GAS are "encouraging signs".
"We believe the shares, trading on 5x FY25E PE, continue to look attractive," she said.
Roddy Davidson at broker Shore Capital said while the statement was "broadly reassuring" he remains of the view that after a 28% fall in the shares over the past six months, a meaningful recovery in the share price "will require evidence of an improvement in the affiliate and digital advertising revenues, and by association traction across its growth acceleration strategy".
Based on earnings and dividend forecasts of 26% and 43% growth respectively over the coming three years, Davidson said he regards the stock's valuation at 4.8 times earnings and a 0.6% yield as "anomalously low and leaves it vulnerable" to being taken over.