Rightmove PLC's (LSE:RMV) strategic growth areas are outperforming expectations, with its mortgage and rental businesses delivering double-digit revenue growth.
Berenberg sees these segments as key drivers of future performance and has increased its price target to 795p from 775p, maintaining a 'buy' rating.
The broker highlighted that Rightmove’s expansion into mortgages, rentals and commercial property is accelerating at a faster-than-expected pace, helping to diversify its revenue streams beyond its core property listings business.
While commercial operations remain subdued due to market conditions, the mortgage business is performing ahead of expectations, reinforcing Rightmove’s position as more than just a listings platform.
Berenberg expects 8-10% revenue growth in 2025, with further gains from new premium products such as Optimiser Edge.
The company has also maintained a near-record agency retention rate despite CoStar’s push into the UK market.
The broker believes Rightmove’s dominant position remains intact, with strategic investments continuing to drive long-term growth.
The shares were flat at 698.2p.