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Found its happy? Rightmove share price edges towards historic £50 high

Favourable analyst reports and juicy profits last year have helped push up portal's stock value dramatically over the past three months.

Nigel Lewis

Rightmove shares are about to break the £50 barrier for the first time as the portal’s popularity with investors has seen its stock enjoy a three-month money-making run.

This will be an historic high for the company’s shares, which were launched in 2006 at £3.35p each, valuing the company at £425 million.

This means anyone who bought shares worth £100,000 then could now cash them in for £1.25 million.

Also, Rightmove’s share price has increased by 19% since early March from £41.8p a share to £49.70p today.

This values the company at £4.45 billion, or almost exactly twice that of Zoopla, even at ZPG recently inflated takeover stock value, and a staggering 27 times Rightmove’s forward earnings forecast.

The huge and ongoing increases in Rightmove’s share price have been attributed by experts to several City investment analyst reports including  those from Peel Hunt, JP Morgan and Liberum Capital.

Rightmove’s growth

Rightmove has also been delivering what the City likes – growth. Its annual report for 2017 published in March revealed yet another year when turnover, profits and shareholder dividend increased year-on-year. During 2017 it increased its monthly revenue from agents by 10% to £922.

Rightmove has also been helped by Zoopla’s recent lock-stock purchase by US private equity firm Silver Lake, which put a similar move by Rightmove in the spotlight.

Following the flotation during the heady days before competition in the form of Zoopla or OnTheMarket, Rightmove’s agent shareholders were Countrywide with 22.5% and both Connells and Halifax Estate Agency Services with 21.7% each.

June 1, 2018

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