Foxtons Share Valuation Cut as Analyst Sees External Headwinds

Foxtons Group’s (LON: FOXT) valuation has been reduced by Edison, which cited ongoing pressure from the wider housing market and geopolitical uncertainty following what it described as “external factors affecting demand.”

The reassessment comes after the company reported full-year results on March 5, with the stock down 25.5 percent year to date and more than 32 percent over the past 12 months. Shares closed Tuesday at 43.65 pence.

Edison said Foxtons Group “slightly over-achieved expectations for FY25 despite external factors affecting demand,” but added that “our valuation moves from 120p to 115p as a result of these external pressures.”

The brokerage noted that the UK housing market remains subdued and said “the current war in the Middle East is likely to also have an impact on demand.”

Full-year revenue rose 5 percent to £172.5 million, with Edison highlighting “higher activity levels in all three business lines.”

Reported profit before tax fell 3 percent to £16.9 million, while adjusted earnings per share slipped 4 percent to 5.0 pence. The total dividend was “unchanged at 1.17p/share.”

Edison also pointed to two acquisitions completed in January, saying they “further underpinned the drive to expand in faster growing commuter markets.”

The firm added that “there remains significant financial headroom to facilitate further M&A, which appears likely given the forthcoming Renters’ Rights Act.”

While acknowledging the added contribution from the deals, Edison said it has “adjusted our estimates,” concluding that the valuation has been reduced “modestly to 115p/share.”