Online property portal Rightmove PLC (LON:RMV) got a double boost on Tuesday after it was upgraded by Deutsche Bank, whilst one of its major rivals has reportedly been forced to call in administrators after running out of money.
Rightmove has seen around 20% wiped from its share price over the past six months, with analysts putting much of this down to competition concerns as well as the recent UK and tech sector sell-off.
READ: Rightmove back on UBS's 'buy' list
“This is an unusual scale drop for a steady market leading online classified business, which consistently delivers 76% operating profit margin and returns c.4% pa of market cap to shareholders via dividends and buyback,” read a note to clients on Tuesday.
“We think concerns are overdone and see potential to re-rate.”
Deutsche Bank moved its recommendation up to ‘buy’ from ‘hold’ and hiked its price target to 530p, from 440p previously.
The upgrade came alongside another potential boon for the FTSE 100 group as reports circulated that online rival Emoov has gone into administration.
According to an email seen by trade magazine Estate Agent Today, Emoov called in administrators on Monday after talks with potential buyers collapsed over the weekend.
In the email, chief executive Russell Quirk is alleged to have said: “Regretfully and despite my significant endeavours over this weekend to achieve such, the prospective purchasers that have been in the wings have not come through with viable offers to acquire the Emoov business.”
Should it be confirmed, the collapse of Emoov would come just a matter of months after it completed a £100mln merger with Urban.co.uk and Tepilo, which was founded by TV presenter Sarah Beeny.
Rightmove shares climbed almost 3% on Tuesday to 460.1p.