Foxtons Plc (LSE:FOXT) has fetched mixed reviews from analysts after announcing profits more than doubled last year in results on Wednesday.
Pre-tax profit surged 121% to £17.5 million, the estate agent said, aided by the likes of rebounding sales and higher lettings revenue.
Panmure Liberum repeated a ‘buy’ rating on the back of the update, pointing to commentary signalling a strong start to the year for Foxtons’ sales pipeline.
“Crucially, this new under-offer activity is not influenced by stamp duty relief indicating a fundamental strength in the London market,” analysts added ahead of April’s increase.
Peel Hunt stuck with a ‘hold’ rating in the meantime though, echoing Panmure that the results had matched expectations but that improving prospects were already priced in.
“While earnings should continue to inflect positively as the market recovers, we believe the current share price reflects much of this improvement,” Peel Hunt said.
Merger and acquisition activity would likely be “increasingly important” going forward, Peel added, flagging expectations for plans to be unveiled at its second quarter capital markets day.
Shares were up 2.2% at 62.36p on Wednesday.