Boost for Rightmove after investment bank ups shares from ‘sell’ to ‘buy’

Rightmove shares rallied this week after hitting a seven-month low last Friday of 422p.

On Monday, UBS raised the stock to a ‘buy’ rating, having previously given the shares a ‘sell’ rating. The shares rose to 433p.

UBS gave Rightmove shares a target of 490p.

Rightmove’s share have slid some 20% since June, but UBS analyst Adam Berlin said that the pull-back was overdone.

He said that Rightmove is “weathering” the weakness in the UK property market, with listing volumes up in the last year.

He also said that OnTheMarket’s growth appears to have come at the expense of Zoopla, rather than Rightmove.

Yesterday, Rightmove shares inched down to around 431p at the close.

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12 Comments

  1. GPL

    Estate Agents are not interested in Rightmove’s Share Price.
     
    The only “price” that matters for them is how much they actually pay Rightmove every month.
     
     

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    1. The Outsider

      If, over the last 10 years, every agent who moaned about the grip that RM has over them, had been investing next year’s 10% fee hike in RM shares, then their annual dividends alone would more than pay for the increase.

      Think smarter.

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      1. Robert May

        That’s thinking smarter? Okaaaaaay!…. a bit like buying shares in Fuggs Protex to pay for the damage they’ll do to your gaff if you don’t pay ‘yers premium’

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        1. The Outsider

          Yes Robert.  RM are an illegal extortion racket.  Okaaaay!
          My comment still stands.  You all moan about the inevitable. You all know what is going to happen. You all are acutely aware that at the moment,  without all agents leaving RM at the same time you cannot do without them.  So why wouldn’t you have invested in them?  Why not turn a negative into a positive? 

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          1. Robert May

            I didn’t say that. I used an analogy to highlight the absurdity of your post.

            It does not make sense for a firm to pay far,far too much, on average  about £700 per month too much (enough for 2 weeks in the Maldives too much)  so they can be a small investor receiving a fractional dividend in place of their £8000 overspend.

            It is agents who are funding the 76% profit margin that attracts the buy rating, if  agents  cut back to a basic only listing  the saving would be far more than the dividend or uplift in share value.

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    2. Property Poke In The Eye

      Then they should take part in the RightMove – December 2018, NO Stock, NO Portal Campaign.

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  2. Robert May

    218-10- 2018  “EYE has approached Rightmove for comment, including inviting a bylined article, so that we can give its side of the argument as to the price hikes”

    Rightmove is a good business that charges  its agents unfairly and too much.

    Is this an official response or just a  Nah Nah Na Nah Nah, (large male chicken)-a- snook at you?

    It says it all that Rightmove is weathering the weakness of the market when I’m hearing of agents who are simply closing their doors.

    You alright Jack?

     

     

     

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  3. JonnyBanana43

    Sell. Sell. Sell.

    OTM looks cheap in comparison…!

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  4. Property Poke In The Eye

    **RightMove December 2018, NO Stock, NO Portal Campaign**

     

    Rightmove will keep on shafting agents who haven’t got the energy to make a stand or agents who just sit on the fence.

    So the agents who moan and groan about the price hikes deserve it.  As they are agents who normally ‘wait and see‘ the world go by.

    If agents want to make a stand and send a clear message to Rightmove they should remove all their stock in December.

    NO Stock, NO Portal Campaign. 

    If you are still on RM and want to make a stand and show agent unity are would remove all stock in December then Reply YES to this post.

    It would be good to canvass opinion on the RightMove December 2018, NO Stock, NO Portal Campaign.

    Any other ideas for agents to be the voice of the Industry oppose to the portals??

     

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    1. 70GJ

      I will if everyone else does and they have to go first. That’s the problem.

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  5. Trevor Gillham

    Someone send UBS the link to PIE.

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  6. Thomas Flowers

    As a small self-employed agent, If PB’s ‘self-employed’ listers had to pay what I had paid RM per listing during their 2017/2018 accounts they would have paid RM £ 23,497,240 ….and I had to complete my sales to get paid!
     
    How much did PB actually pay a £million or two?
     
    PB’s charging structure is an economic disaster for RM and many proper estate agents, that is why they shall have to find a way to generate more income from members on top of annual price hikes.
     
    Robert May has also calculated that 4000 or so agents are already on the bread-line. 4000 branches x £12,000 RM fees per annum are £48,000,000.
     
    How will RM replace this income if 1000s become insolvent?
     
    To start with, If I were RM, I would work out the average one branch agency cost per listing and apply this cost to PB charges per listing with no volume discount as they charge regardless?
     
    Now that would be a little more competitive?          

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