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Rightmove climbing ladder despite Brexit gloom - broker

Published: 10:12 28 Jul 2016 BST

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Deutsche is upbeat on UK property portal leader Rightmove (LON:RMV), which it says is moving 'up the ladder'.

The group surprised on the upside with its interim numbers and struck a very optimistic tone at the analyst presentation, said analyst Chris Collett.

"According to management the UK property market is in rude health, as are its estate agent customers. Rightmove’s own position in the property market has strengthened, with improvements in all KPIs and powerful new product launches."

Rightmove earns income from estate agents and developers that use its website to list their properties, It posted a 16% increase in sales to £107.9mln in the six months to June 30, while pre-tax profits rose 21% to £80.6mln.

The FTSE 250 group lost nearly a fifth of its value on so called 'fallout Friday' post the Brexit vote on June 24, but now shares are almost back to previous levels.

Deutsche said it had raised its 2016 estimates by 2% and upped the target price to 3,720p from 3,200p. It says 'hold' the stock on valuation grounds.

The same broker looks at independent television broadcaster ITV (LON:ITV) and decides this is "not  a buy".

Among concerns are the group's studio production business, where its main strategy lies and what the firm is doing regarding the ever prevalent non-linear model of TV viewing (on demand).

The stock is rated 'hold' but the target does move to 200p from 175p.

Elsewhere, another German bank Bahrenberg repeats a 'buy' on DCC Plc (LON:DCC) and moves the target price to 7600p from 7250p.

Elsewhere, Tullow Oil (LON:TLW) has an 'underperform' stance reiterated and the target is moved to 175p from 166p.

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