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Buy Signal on Scout24 (G24-DE)

We had an Enter Long signal on July 14, 2021, triggered by our system on G24-DE, Scout24, the German market place operator.

Scout24 is a € 6.5 Bn market cap, an holding company which mainly operates an on-line property marketplace(ImmobilienScout24). Germany accounts for 97% of sales. In August 2019, the group sold the operation of an online automotive marketplace (AutoScout24).

The strategy of ImmobilienScout24 is to offer a comprehensive ecosystem for real estate agents, home sellers and consumers in Germany and Austria. In this context, the company focus on 1/Agents, 2/Home sellers, 3/Home seekers. The company aims to further expand the leading competitive position of ImmoScout24 through additional investment in service offering, and with the aim to further advances the digitalisation of the entire German real estate ecosystem.

Scout24 is expected to post a revenue of €381M in 2021 (+8% yoy) and to deliver double digit growth in the next following years. The operating margin is very high, at 47% and should expand further to 52% in 2023. Therefore the EPS growth should reach 20% in 2022/23. The cash-flow generation is very significant and allow to finance both organic growth and acquisitions when needed.

Short term catalyst : EPS growth acceleration, acquisitions.

This signal looks consistent with the European Internet sector in Major Bullish Trend.