The coronavirus outbreak may be turning out better than expected for Moneysupermarket.com Group PLC (LON:MONY), with analysts at Barclays saying the UK’s self-isolating population will be more likely to shop for deals on the comparison website.
In a note upgrading the FTSE 250 firm to ‘overweight’ from ‘equal weight’ and cutting its price target to 310p from 360p, the investment bank said the coronavirus outbreak will mean that people needing insurance products “will now have more time at home to think about switching onto the best deal”, and the company was “far from the most impacted by [coronavirus]”.
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“There are corners of cyclical exposure in some verticals - but, in the context of the overall market backdrop, downside revenue scenarios are not severe, whilst there is flex on cost to mitigate and a net cash balance sheet”, Barclays said.
As a result, Barclay said while the firm had “longer term structural questions” surrounding it, they like the risk/reward profile and saw the stock as “a good place to be positioned in uncertain times”.
Shares in the company were down 4.6% at 237p.