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Rightmove shares fall 3% as UBS downgrades

Rightmove shares fall 3% as UBS downgrades

Rightmove (LON:RMV) described as a great business with limited upside as UBS downgraded its recommendation shares in the property website.

The valuation call stems from a 95% rise in the share price in 2013, which leaves the stock very little to shoot at, according to analyst Catriona O'Grady.

She has pegged back her recommendation to ‘neutral’ from ‘buy’, though the price target rises to 3,020p from 2,600p.

At 11.30am, the shares were down 3% at 2,727p, valuing the business at £2.7bn.

“We continue to believe that Rightmove's business model offers a relatively defensive way to play the recovery in the UK housing market alongside longer term benefits from the structural shift in estate agent advertising spend online,” said O’Grady in a note to clients.

“That said, we believe the current share price reflects the potential for near term upgrades to earnings driven by further housing market growth in 2014.”

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