Foxtons Group — FY25 results to be in line; M&A opportunities

Foxtons Group is expected to achieve its FY25 profit expectation despite external factors affecting demand. However, these factors, plus an internal decision to maintain headcount to capture growth when its arises, leads us to reduce our FY26 and FY27 estimates, in effect pushing out growth by 12 months. Our valuation moves from 126p to 120p as a result. That said, financial headroom has been increased to facilitate further M&A, which appears increasingly likely given the forthcoming Renters’ Rights Act.