Analyst Luke Holbrook of Morgan Stanley maintained a Hold rating on Prosus, with a price target of €60.00.
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Luke Holbrook has given his Hold rating due to a combination of factors surrounding Prosus’s recent strategic moves and market positioning. The proposed acquisition of La Centrale for €1.1 billion, which represents a small portion of Prosus’s net asset value, is a significant factor. While the acquisition expands OLX’s presence in France, Prosus lacks other substantial assets in the country, raising questions about the strategic fit within its European ecosystem.
La Centrale is recognized as a strong player in the French motor classifieds market, holding the second position and showing signs of gaining market share. However, the valuation of the acquisition, with high multiples of EBITDA and EBIT, suggests that the financial benefits may take time to materialize. Additionally, while there is potential for synergies and leveraging Prosus’s broader classified network and fintech capabilities, these benefits are speculative and contingent on future developments. These considerations contribute to Holbrook’s decision to maintain a Hold rating on Prosus’s stock.
According to TipRanks, Holbrook is a 4-star analyst with an average return of 12.0% and a 72.62% success rate. Holbrook covers the Consumer Cyclical sector, focusing on stocks such as HelloFresh SE, Zalando, and Delivery Hero SE.