Moneysupermarket.com surges on Jefferies upgrade

Shares in Moneysupermarket.com have surged after Jefferies upgraded the stock from ‘hold’ to ‘buy’.

The investment bank issued a note on Wednesday, saying it had been too cautious this year and the company had performed well.

“It is one of the few online marketplace models we have not wholeheartedly gotten behind.”

It also highlights that consensus expectations for the company ate modest, with year-on-year revenue growth forecast for 7% in 2016 and 2017.

Jefferies also noted that the company has only recently taken on the 'data driven insight' mantra.

“The upside from leveraging data to provide business intelligence is real, specifically to enhance customer acquisition and to inform the development of value add customer proposition.

“The ramped capex is positive and whilst the jury remains out in terms of execution ability, the H115 performance was robust.”

With a desire to invest for growth, it upgraded the stock and revised its price target from 263p to 440p.

Shares in Moneysupermarket.com were up 16.9p (5.28%) to 336.8p at 1451 GMT.