(CercleFinance.com) - Oddo is initiating its coverage of the classified ad segment with four new stocks: Adevinta (Outperform, 200 NOK), Scout24 (Outperform, 80 euros), Auto Trader (Neutral, 585p) and Rightmove (Underperform, 600p).
The analyst is now including Prosus (Outperform, TP 126 euros), whose classified business is the main consolidated asset.
Taking into account the latter division, this segment has a market capitalisation of 41 billion euros, the analyst says.
The sector has many strengths and benefits from structural catalysts (online penetration, monetisation of the transactional model, M&A) that will enable it to maintain an already very solid growth in operating income (+15% p.a. over the past 5 years), the broker says.