Rightmove and Purplebricks among the property companies seeing the Boris bounce

Rightmove has been named in a report produced for investors about companies likely to benefit from the new Tory government.

The report, Magic Johnson, by Exane BNP Paribas, suggests that Rightmove’s shares could reach 700p following the election.

It says that the most significant factor is likely to be an improved demand for housing as consumers resume major purchases.

Exane expects this “to flow through to improved estate agency formation and improved new product upsell to agents”.

The report suggests that Rightmove’s revenues could grow between 8% and 11% this coming year.

It forecasts average advertising rate per month at about £1,190 next year, but growing by up to £1,285 the following year.

In one scenario, the report sees agency numbers starting next year down by 570 to 15,961. However, in a more bullish scenario it sees numbers rise by 413 to 16,944.

The report sees Rightmove’s profit margins continuing to be between 74% and 76% over the next two years.

On Friday’s election results day, Rightmove shares were among those which swung upward. Rightmove’s shares touched a high of 660p but ended the day about 4% up at 641p.

Savills shares soared 13.5% to end the day at 1,152p, having reached higher still at 1,186p.

Foxtons shares went up to over 92p before settling at about 86p, a rise of over 5% during the day.

Countrywide’s shares rose 7% to 6p.

LSL, parent company to brands including Your Move, Reeds Rains and Marsh & Parsons, saw its shares rise 3% to 275p, having at one stage touched 285p.

Belvoir prices were up by almost 9% to 139p.

Shares in The Property Franchise Group ended at about 198p, an all-time high.

Purplebricks shares also did well on Friday, gaining almost 10% to close at 115p. There was heavy trading, with two trades of 2,113,921 shares at 112p, below.

x

Email the story to a friend



8 Comments

  1. GPL

     
    ….and GPL commented in response to Exane BNP Paribas
     
    “without Estate Agents Stock to advertise, Rightmove are worthless”        
     
     

    Report
  2. GeorgeOrwell

    “The Boris Bounce” ?

    What we have with Boris is a toddler with boundless energy, no understanding of the adult world and an ability to announce anything that comes into his head as being true.

    He is the ultimate turkey and is indeed “oven ready”.

    We are at the entrance to the rollercoaster of a lifetime with Clown Boris, not forgetting that we voted for him because we wanted this endless charade over.

    We’ll witness pretty soon whether all this nonsense that has been spun by Boris & Co is actually true. The bullsh£te stops Boris and the work actually starts.

    The political offerings/options we all had to choose from were woeful – we have picked the best worst option.

    This better work Boris because if it doesn’t, there will be nowhere on this planet that you can hide. You wanted they keys to the car that is our UK economy, now we’ll see whether you have any ability to drive it properly.

    For now, the only Boris Bounce I can see is the bubbles bouncing around inside his head.

     

    Report
    1. Bigbee73

      Wow, sore loser!

      Report
      1. GeorgeOrwell

        Not at all BB73.

        Boris Bullsh£te stops Now. Like Adam Ant, he’ll have to Stand & Deliver.

        Like the estate agent who claims how good they are before instructed, when instructed it’s time to deliver.

        Boris better deliver after all his bold promises/predictions.

        I’ll shake his hand if he delivers and if he doesn’t I’ll squeeze his ????? until his eyes pop out!!!

         

         

        Report
        1. Woodentop

          Imagine what it would have been like if the other fella got the job!

          Report
  3. PeeBee

    “There was heavy trading, with two trades of 2,113,921 shares at 112p…”
     
    There were apparently three transactions of that exact amount.  The first was two hours before those shown in the screenshot above.
     
    Interesting to see if they trigger an RNS.

    Report
  4. Woodentop

    10.34am and PB shares value is on the way back down. Will it continue? When will we hear the result of the HMRC investigation?

    Report
  5. TwitterSalisPropNews

    No major political party wanted Brexit. So whatever party you voted for, it was/is the public who wanted Brexit – they voted for it, twice. It was always going to happen. Even before the election, we all knew it was going to happen, the question was/is, will the trade deal be good or bad. So there is no new certainty which I keep reading we now have – have they forgotten the last 6 weeks was simply about an election, Brexit and the deal uncertainty remains.
     
    But as for the quality of the deal we can do nothing about it, literally nothing, so I for one will gear up now and have/recruit extra quality people in my business, and get out there now and take more market share from my competitors to cushion any blow – if the deal ends up being bad and the UK ends up looking internationally unattractive to invest in, once we leave. If the desl is good and nothing changes economically, then your business wins too, as you/we then have quality and more market share on top.

    Report
X

You must be logged in to report this comment!

Comments are closed.

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.