Berenberg Ups Scout24 Price Target on AI-driven Growth Outlook; Buy Rating Kept

Berenberg raised its price target for Scout24 (G24.F), with an unchanged buy rating, and lifted its earnings estimates for the German real estate portal operator thanks to artificial intelligence. "We strongly believe that instead of a headwind, artificial intelligence (AI) can provide a tailwind for real estate classifieds in general, and for Scout24 in particular. We believe that Scout24 is at the forefront of AI innovation. As such, we overhaul our mid- and long-term outlook for the company, as we expect accelerating revenue and earnings growth driven by AI initiatives. We raise our 12-month price target to EUR140 but see the potential for the shares to more than double to EUR180 on a three-year investment horizon," the research firm said Wednesday. Previously, the price target was 100 euros. "Thanks to its broad-based monetisation strategy and its strong market position, Scout24 is well placed to continue to deliver solid double-digit growth even in the face of the sharp downturn in the German real estate transaction market. We view Scout24 as a 'whatever-weather winner,'" analysts added.