It is rare for a price comparison site to sound like a technology stock, but that is increasingly how MONY Group PLC (LSE:MONY) wants to be seen.
RBC is convinced, keeping its 'outperform' rating and 260p target, around 32% above Thursday’s 196p close, arguing that the group’s data capabilities and new SuperSaveClub are starting to show their worth.
MONY, best known for MoneySuperMarket and MoneySavingExpert brands, has been working to deepen customer loyalty through the SuperSaveClub scheme.
Of its 14 million customers, 1.8 million are now members, a cohort showing a threefold increase in renewals and second product purchases. RBC reckons each extra million members could lift gross margin by about one percentage point, and that average revenue per user is already 35% higher than for non-members.
Management told investors at an RBC breakfast briefing that SuperSaveClub is helping counter the high cost of online advertising, while giving MONY a clearer view of customer behaviour.
The platform’s re-engineering work, essentially rebuilding the technology that underpins the site, has given it what the broker calls a “single source of truth” for data, which should make its artificial intelligence tools more effective in targeting users and cutting costs. Operating expenses fell 6% year on year in the first half.
RBC’s analysts think this digital backbone will become a competitive edge as regulation tightens around the use of AI in personal finance.
Chief executive Peter Duffy said the data demands of insurance quoting will be a natural barrier to purely AI-driven rivals, and that regulators are unlikely to allow automation to dominate what remains an essential consumer service.
The energy switching arm, dormant since 2019, has shown “green shoots” with its first collective switch in years. Though still well below pre-crisis levels, RBC sees scope for recovery as market conditions normalise.
The shares trade on about 6.8 times forecast 2026 earnings before interest, tax, depreciation and amortisation, a 28% discount to their own history.
RBC believes the rating fails to reflect MONY’s progress, and argues a move towards nine times earnings is justified. That underpins its 260p target, with a 6.6% dividend yield adding to the appeal.
The broker sees a clear story emerging: a business that has done the hard yards internally and is now positioned to reap the rewards as customers stick around for more than just a one-off deal.