PHOTO: Purblebricks

The cut-price online estate agency Purplebricks may have to abandon its struggling Australian operation to survive in the United Kingdom, analysts at investment bank Berenberg have warned.

Berenberg slashed its share price forecast for the embattled company from £4.70 to 80 pence.

It switched its rating from “buy” to “sell”, sending the stock into an 8.4 per cent tailspin on the British share market on Friday.

The Financial Times reported: “It was more bad news for Purplebricks as Berenberg analysts turned sharply bearish on the online estate agent.”

The analysis by Berenberg suggests Purplebricks is “running out of steam” in the UK.

However Purplebricks hit back saying it is looking to boost the business in Australia.