UBS upgraded Scout24 to "buy" from "neutral," betting on the German property listings firm's resilience against AI disruption risks and improved earnings potential. The bank trimmed its price target to €102.60 from €107.80 after switching to a discounted cash flow valuation model, still implying 39% upside from current levels.

Analysts highlighted Scout24's leading AI Readiness score among European classifieds peers, citing its focus on property listings as less vulnerable to generative AI threats than other sectors. UBS raised revenue forecasts by 1% for 2026 and 2% for 2027, projecting €868 million in sales by 2027 compared with €566 million in 2024. The upgrade follows a 29% share price decline over six months.

Investor concerns about capital allocation after Scout24's Spanish acquisitions appear overdone, according to UBS. The company committed to €500 million in share buybacks through mid-2028, having already repurchased €22.1 million in the program's first month. Current valuations at a 4.9% free cash flow yield remain attractive versus sector averages.

Quick Fact: Scout24 reported revenues of €566 million in 2024, projected to reach €868 million by 2027.