Rightmove PLC (LSE:RMV) has seen its price target increased by Liberum on the back of its “solid” first-half results.
The hike – to 705p from 700p – was coupled with a reiterated ‘buy’ recommendation from the London-based investment bank.
This represented a 10% premium on the 640p price that Rightmove was trading at when the note was released. Although it was changing hands 1.4% higher at 648.8p on Monday afternoon.
The UK property portal reported sales growth of 9% year-on-year, driven by 11% average revenue per agent (ARPA) with record agency ARPA growth.
Underlying earnings before income and tax increased by 7% compared with the same six-month period last year.
“Management’s outlook pointed to FY22E ARPA to be ahead of previous guidance, which we forecast will drive low single digit FY22E consensus upgrades,” Liberum said in a note on Monday.