Huge Opportunities
With iProperty group expected to convert its positive cashflow into a positive net profit result in a year or two, analysts are starting to question whether 19.9% shareholder REA Group, owner of realestate.com.au, will make a move for the small-cap dynamo!
Analysts at Credit Suisse estimate that iProperty group can grow revenue at 20% per annum over the next 8 years, which could easily see its market cap grow at the same rate as profit margins will improve with scale.
iProperty’s market cap today stands at $465 million, compared to $5.2 billion for REA Group. Growing at 20% per annum could see that market cap at over $2 billion by 2023! For reference, REA Group grew from a market cap of $484 million to $1.8 billion between 2006 and 2012- a period of 8 years!
The analysts at Morgans are equally bullish, pointing out that iProperty could be worth as much as $5.35 (more than double today’s $2.48) if some more aggressive assumptions are used on the path to profitability.
Takeover Potential?
While iProperty group has had exceptional success so far in establishing market-leading positions in Malaysia, Hong Kong, Thailand, and Indonesia, and the second spot in Singapore, most agree that REA Group will wait for more results before making a move.
http://www.********.au/2015/06/08/could-rea-group-limited-buy-iproperty-group-ltd-in-2015/
- Forums
- ASX - By Stock
- IPP
- Ann: iProperty Group increases guidance for 2015
Ann: iProperty Group increases guidance for 2015, page-8
-
- There are more pages in this discussion • 2 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add IPP (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
AHK
ARK MINES LIMITED
Ben Emery, Executive Director
Ben Emery
Executive Director
SPONSORED BY The Market Online