RBC Capital Markets upgraded Moneysupermarket on Monday to ‘outperform’ from ‘sector perform’ and lifted the price target to 250p from 230p, as it argued that the 20% de-rating since August presents a good entry point.
It said the shares are now trading attractively at a free cash flow yield of 10%.
“We believe MONY’s core business should benefit from consumers increasingly looking to save on their monthly bills, positioning it as a resilient play during the economic downturn,” RBC said.
“On our conservative assumptions, we believe the company can deliver in line with expectations, which amid market downgrades, should drive relative stock outperformance.”
At 1100 BST, the shares were up 8% at 195.20p.
