Rightmove PLC (LON:RMV) shares fell on Tuesday morning after Deutsche Bank downgraded its recommendation for the online property portal, claiming its leadership position is now priced in to the shares.
The FTSE 250-group has climbed almost 25% since the turn of the year, boosted by a 10% jump in annual revenue and profit, taking the stock up to the analysts’ target price of 550p (up from 530p).
READ: Rightmove revenues jump in 2018
As such, they argue there isn’t much upside potential at the moment, so Deutsche Bank has moved its rating to ‘hold’ from ‘buy’, with the shares now fairly reflecting the stock’s value.
“We still believe Rightmove is well positioned to weather both competitive and cyclical pressures, thanks to its robust position providing premium products beyond basic listing, data insight tools and leads to agent clients,” read this morning’s research note.
“However, as consensus partly caught up with our more bullish estimates, sentiment about exposure to the cycle is more muted and valuation appears more fair we downgrade to ‘hold’.”
Shares dropped 1.2% to 542.1p on Tuesday.