Deutsche Bank adjusted its price target for MONY Group (MONY:LN), a company listed on the London Stock Exchange, decreasing it to £2.60 from the previous target of £2.70. The firm maintained its Hold rating on the stock.
The revision follows MONY Group's third-quarter performance, which the analyst found slightly disappointing compared to their projections. Although the company expressed confidence in achieving the full-year EBITDA consensus of £140 million, Deutsche Bank's expectations were slightly higher at £141.8 million before the update.
MONY Group reported a 2% decline in group revenues for the third quarter, contrary to Deutsche Bank's anticipation of a 1% increase, which was the growth rate in the second quarter. The Insurance segment grew by 1%, aligning with expectations, but other areas of the business fell short. The Money division saw a 4% drop, whereas Deutsche Bank had predicted a 2% increase. Home Services declined by 8%, more than the 5% decrease Deutsche Bank forecasted.
The Travel sector underperformed significantly with a 15% fall, despite the bank's optimistic 10% growth prediction, although it is noted as a smaller division. The Cashback segment increased by 2%, just below the 3% anticipated by Deutsche Bank.
According to the company's management, the Insurance division's performance was in line with expectations, demonstrating discipline in a competitive pay-per-click (PPC) market. The third quarter of the previous year was highlighted as a particularly challenging comparison for car insurance. In contrast, the Money vertical did not meet Deutsche Bank's estimates. The management pointed out that while there was strong credit card switching activity, this was counteracted by the ongoing challenges in current account switching, largely due to a lack of attractive offers during the quarter.
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