Purplebricks shares slide as investors worry about foundations

Shares in online estate agent Purplebricks have continued to fall as investors prepare themselves for the possibility of underwhelming sales figures.

Its share price has fallen by more than one-third since the end of February, wiping off £270m from the company’s value.

Yesterday alone Purplebricks’ shares dropped 8% to 290p and are close to a year-low.

A report by UBS published last week, when shares were trading above 370p, reduced its target price for the stock to 285p.

“Our latest UBS Evidence Lab property listings tracker up to March 5 2018 indicates that growth may be slowing for Purplebricks,” it said.

“Given the importance of the Spring Market, we believe that this level of progress will be below management’s expectations.”

In February Purplebricks was forced to publicly respond to another report from City analyst Jefferies International which claimed sales were slow, and restated that trading for the year to April was in line with expectations.

The Solihull-based group has invested heavily in establishing its brand in the UK and expanding into Australia and the USA.