Credit Suisse cuts estimates for Countrywide on weak outlook
Given the sustained worsening in trading conditions seen in the last three months of 2014 and the distinctly cautious tone to market commentary regarding the outlook for next year, Credit Suisse reduced its estimates for earnings per share (EPS) at Countrywide for this year and next by 8% and 3%, respectively.
Countrywide
394.80p
16:35 05/03/21
FTSE 250
19,281.97
09:25 19/04/24
FTSE 350
4,309.28
09:25 19/04/24
FTSE All-Share
4,265.59
09:25 19/04/24
Real Estate Investment & Services
2,127.48
09:24 19/04/24
As a result their target on the shares has also come down to 498p from 538p previously.
The main reason why analyst H.Goad decided to cut his estimates was the reduced growth forecast for the Estate Agency and London&Premier division.
Indeed, the momentum in transaction volumes slowed throughout fiscal year 2014.
Even so, the shares now change hands at just ten and eight times’ the estimated EPS for fiscal years 2015 and 2016, respectively, prompting Goad to tell clients that: “we believe [the shares] offer fair value for the company.
Hence his decision to maintain their recommendation on the stock at ‘neutral’.