Moneysupermarket.com (LSE:MONY) Group PLC’s is an “attractive buying opportunity," said analysts at the Royal Bank of Canada (TSX:RY).
RBC believe the 15% share pull-back in response to Amazon entering the home insurance market, announced last week, was “excessive."
As a result, the target price for the comparison website was set at 250p, with the British arm of the Canadian bank reiterating its outperform rating on the stock.
Analysts said the “relatively small size of the addressable market for Amazon makes it unlikely that the company will compete aggressively in the market.
“We also see limited room for Amazon to differentiate its proposition, in terms of the customer journey, product supply and price.”
Interestingly, Liberum echoed similar views when commenting on Jeff Bezos’s company announcing its intention to dip into the UK comparison market.