Moneysupermarket.com Group Plc (LON:MONY) has been downgraded by RBC Capital Markets as analyst Kamran Hossain believes its markets could prove “more difficult” in the near term.
In a note, the analyst said that Money Supermarket offers “obvious attractions” - highlighting its strong market positions in underpenetrated markets - but, the near term could be more challenging.
READ: Moneysupermarket hit by slowdown in energy supplier switching
“We reduce our medium term revenue growth assumptions to reflect our view on the market,” Hossain said.
“With the stock trading at a premium to its closest peer, we see little room for multiple expansion in the coming year and would rather wait for a better entry point into what we still view as an attractive long term story.”
RBC’s rating moves to ‘sector perform’ from ‘outperform’, with the bank’s target price moving to 350p from 425p.