Foxtons Group — Market share gains in Sales continues apace

Foxtons Group’s FY24 trading update confirmed revenue and adjusted operating profit growth of c 11% and c 33%, respectively, reflecting the developing success of the company’s strategic vision. This suggests that the medium-term targets, particularly the adjusted annualised operating profit target of £25–30m, are increasingly coming into focus. We believe market share is being gained across all divisions, likely to be further boosted by the under-offer pipeline in Sales, which is the strongest since 2016. We have modestly raised our FY24e forecasts but maintained estimates further out at this stage, given the increase in Stamp Duty from April. Our valuation remains 134p per share, though risks appear to be skewed to the upside if market momentum continues, which could be further supported by a potential easing of interest rates.