Rightmove shares edged up yesterday to yet another record high.
This was despite being downgraded by analysts at hedge fund Blue Sky Capital.
It said that its concerns were about valuation, and said Rightmove had “limited customer growth”.
Blue Sky Capital initially gave Rightmove shares a ‘Buy’ rating in March, since when the shares have returned 30% in eight months, easily out-performing the FTSE’s All Share index rise of 4%.
Rightmove’s share price has also risen 17% from early October.
However, Blue Sky Capital said that agents are facing a weak housing market, and developers are doing less well than a year ago.
The analyst said that during the first half of this year, Rightmove achieved an overall revenue growth of 9.8%. The new homes segment grew 29%, but the core estate agency segment by 5.5%.
However, while Blue Sky Capital thinks Rightmove can grow its earnings another 10% “over time”, it sees some near-term risks.
It has lowered the shares from ‘Buy’ to ‘Neutral’.
Despite the downgrade, Rightmove shares closed yesterday at about 611p, up some 1%.
Meanwhile, other property businesses also enjoyed a positive day on the stock market yesterday.
Countrywide shares went up over 9%, although from such a low base that it put only 0.4p on the price, which finished at about 4.8p.
Purplebricks’ share price put on almost 4%, closing at about 110p.
Even OnTheMarket shares, while still bumping along the bottom, managed to put on almost 1% to close at about 68.5p.
While Foxtons shares were unchanged at 66p, LSL shares were up 2% to close at 242p, and Belvoir closed 2% up at 125p.
The biggest winner was The Property Franchise Group (see separate story) with a 10% gain.