Foxtons Group’s Q125 trading update revealed revenue growth of 24%, driven predominantly by growth in the Sales division, which in turn benefited from a pull forward in transactions due to Stamp Duty changes. However, in the longer term, we believe the company’s strategic direction remains positive, and we expect an update on its strategy to be revealed at the 4 June capital markets day. This may see an upgrade to the medium-term adjusted operating profit target of £28–33m, which is now coming into focus. We maintain our revenue and operating profit estimates and our 134p/share valuation, although risks appear to be skewed to the upside if market momentum continues.

Foxtons Group’s FY24 results showed revenue and adjusted operating profit growth of c 11% and c 38%, respectively, reflecting the developing success of the company’s strategic vision. This suggests that its medium-term targets, particularly the revised adjusted operating profit target of £28m–33m, are coming increasingly into focus. We believe market share is being gained across all divisions. We maintain our estimates and our 134p per share valuation, though risks appear to be skewed to the upside if market momentum continues, which could be supported by a further easing of interest rates.

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.