Berenberg bumps up target price on Rightmove
Analysts at Berenberg raised their target price on from 775.0p to 795.0p on Tuesday following the group's FY24 results last week.
Berenberg noted that Rightmove's share price has increased by roughly 9% since its FY24 results, outperforming the FTSE All-Share by around 7%.
The German bank thinks that the key takeaways from Rightove's results were that the core business continued to "perform well" and was seemingly unaffected by rival CoStar's entry into the market, that its strategic growth areas were operationally on track and that its FY25 outlook pointed to an acceleration in revenue growth.
Berenberg also introduced FY27 forecasts on Rightmove for the first time, which implies 10% revenue growth and an underlying EBIT margin of 70%.
"Rightmove's shares have increased by 22% over the past 12 months and the shares have re-rated by 9% to 23.3x on a 12-month forward price-to-earnings basis. We increase our price target to 795p (from 775p), which reflects the mechanical update of our DCF and forecasts," said Berenberg, which reiterated its 'buy' rating on the stock.
Reporting by Iain Gilbert at Sharecast.com
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