According to Macquarie, PEXA Group’s acquisition of UK-based Smoove further mitigates the risks of its UK strategy, yet ambiguity remains concerning the execution details.
The brokerage slashes the price target for the digital property settlements platform to A$15.20, down from A$15.80.
Macquarie has stated that ‘the acquisition of Smoove mitigates the risks of the UK roll-out further, however, the business is loss making and unanswered queries concerning the execution strategy linger’.
In addition, Macquarie has downgraded the company’s EPS for FY24-26 by 6.5%, 7.4%, and 6.1%, correspondingly.
At present, PEXA Group’s stock has fallen by 3.1%, now standing at A$10.56.
Taken from analysis provided by LSEG, seven out of eight analysts advise purchasing the stock or rate it higher, whereas one recommends selling.
Their median price target stands at A$14.05.
As of the most recent closing, the stock has dropped by 8.8% for the year to date.
PEXA Group is a digital property settlements platform based in Australia.