Rightmove PLC (LSE:RMV) demonstrated “resilience” to the ongoing housing downturn by upgrading its full-year outlook on Monday, despite trading ahead of expectations, according to analysts.
At its investor day this week, Rightmove said it aims to generate more than £600 million of revenue, over £35 million of commercial real estate revenue, and at least £25 million of mortgage revenue in 2028.
The company also said it is targeting £420 million of underlying operating profit by 2028.
Analysts at Berenberg bank reiterated their ‘buy’ rating for the property sales platform in a research note on Thursday, after first upgrading the company's rating a month ago.
They said Rightmove's medium-term targets “imply an acceleration beyond consensus’s 9-10% top-line growth post-2025 to 12%”, brushing off competition from new UK market entrant CoStar.
“The business anticipates maintaining a 70% margin in the medium term, in line with the current guided range of 70-72%,” Berenberg analysts said in the research note.
“The strategy set out will materially augment Rightmove’s commercial real estate and mortgages offerings, underpinned by its data-centric approach.”