Foxtons Company Research (FOXT)

Foxtons Group’s long-term outlook is promising and we believe its strategic direction remains positive. The revised medium-term financial targets announced recently are stretching but, in our opinion, very achievable given the positive cyclical outlook and underpinned by Foxtons’ tech stack and proprietary data vault. Furthermore, investment in the business and employees is boosting satisfaction and reducing staff turnover. We maintain our revenue and operating profit estimates and our 134p/share valuation, although risks appear to be skewed to the upside if market momentum continues.