Rightmove ticks up as Berenberg upgrades to 'hold'

ICG Longbow Senior Secured UK Property Debt Investments

03/08/2021 08:47

** Shares of UK property website Rightmove  RMV.L  up 1.6%
at 730.6p after Berenberg upgrades to "hold" from "sell"
    ** Brokerage says its previous thesis on RMV experiencing 
slowing rev growth and margin pressure is unlikely to occur in
the medium term, raising PT to 710p from 455p
    ** Berenberg had previously said the company would struggle
to extract higher Average Revenue Per Advertiser (ARPA) from its
estate agency customers but now is more optimistic given the
current market environment
    ** "With the UK real estate market in rude health, and
likely to remain robust even once the reduced stamp duty
incentive comes to an end in September, it is hard to see what
could really hinder Rightmove" - Berenberg 
    ** However, brokerage does not expect a meaningful increase
in profitability given RMV's need for continued reinvestment in
new products
    ** RMV reported on July 30 its ARPA jumped 63% to a record
1,163 pounds ($1,621.45) per month  urn:newsml:reuters.com:*:nL4N2P61C2
    ** 4 of 18 brokerages rate the stock "buy" or higher, 7
"hold" and 7 "sell" or lower; their median PT is 600p -
Refinitiv data
    ** Shares up 10.5% this year as of Monday's close

 (Reporting by Tapanjana Rudra)
 ((Tapanjana.Rudra@thomsonreuters.com;))