The UK-based Rightmove PLC (GB:RMV) defies housing market uncertainty, raising one of its annual revenue targets against all odds. In its trading update released on Monday, the company stated that its overall revenue growth has exceeded consensus expectations over the last few months. It now anticipates average revenues per advertiser for the full year to be in the range of £112 and £116, surpassing the earlier guidance of £103-£105.
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The primary driver of this growth has been the growing adoption of the company’s products, like Native Search Adverts and Advanced Development Listing, among new home developers.
The favorable update resulted in a 4.7% gain in the share price yesterday. This came as a sigh of relief for investors after last month’s 16% single-day decline, prompted by the news of the acquisition of its rival, OnTheMarket PLC (GB:OTMP).
Rightmove PLC is a well-known name in the residential and commercial property industry in the UK. The company provides its services through its online portal, rightmove.co.uk.
Let’s take a look at some of the numbers.
Favorable Outlook
The company believes that its favorable performance during market uncertainty underscores the strong affinity of the UK consumer base for its platform. It has maintained its overall revenue outlook for the full year. It anticipates revenue growth in the range of 8%-10% and underlying earnings growth of 7%-8%, as stated previously. Rightmove further reported that both estate agent subscriptions and listings for new home developments have remained steady.
The company also announced the launch of its brokerage services for its customers for the first time through its website. The company aims to generate £25 million from this segment by 2028.
The company will announce its fourth-quarter and full-year results on February 23, 2024.
What is the Target Price for Rightmove?
On TipRanks, RMV stock has been assigned a Moderate Buy rating based on four Buy and two Sell recommendations. The Rightmove share price target of 626.8p offers a growth of 18% on the current trading price.
Post-update, Numis upgraded its rating from Hold to Buy on the stock, predicting an upside of 27%. Additionally, UBS analyst Joseph Barnet-Lamb reiterated his Buy rating on the stock while raising his price target from 688p to 699p. This price target implies a growth potential of 31%.
