Rightmove PLC (LSE:RMV) shares look set for further gains after Deutsche Bank raised its price target to 927p from 815p and reiterated a 'buy' rating, following half-year results that were described as “a good set of numbers".
The property portal reported revenue up 10% in the first half, ahead of Deutsche’s forecast, and delivered marginal beats at every level.
The broker noted growing momentum in Rightmove’s “other” revenue streams, beyond its core property listings business, and said management remains confident about growth in the second half, even if the pace is expected to moderate.
This slight slowdown is due to a particularly strong comparable period last year, rather than any sign of weakness.
Deutsche called the outlook comments prudent given the current economic backdrop in the UK, but said Rightmove continues to execute well and is delivering consistent growth.
With the company’s dominant position in online property and its ability to expand into new revenue streams, the bank sees further upside for shareholders.
In afternoon trading, the shares were up 2.2p at 791p.