Bernstein Bullish on Rightmove Shares, Initiates at Outperform With 870p Target

Bernstein initiated coverage of Rightmove (LON: RMV) with an Outperform rating and a price target of 870p, in a note this week.

The broker described the UK property portal as a clear market leader, citing its long-standing dominance and financial strength. 

According to Bernstein, Rightmove is the “epitome of a successful classified that benefits from network effects” that has allowed it to fend off any market entrants that have “tried to take a slice of the pie in the last 25 years.”

Bernstein highlighted Rightmove’s position as a household name, with more than 95% brand awareness among homeowners and over 90% public awareness across the U.K. 

The firm also pointed to the company’s strong direct traffic, accounting for around 85% of visits, and an agency retention rate of 96%, underscoring its entrenched role in the housing market.

Financially, Rightmove continues to impress with an operating profit margin above 70%, the analysts noted. 

Shareholder returns have been a further strength, with £1.6 billion distributed over the past decade and more than £800 million earmarked for the next four years.

Bernstein argued that the scale of data accumulated over two decades provides Rightmove with a durable competitive advantage. “In our view, RMV the market leading UK property portal, is a poster child in classifieds,” the analysts wrote.

With a secure foothold and continued investment in innovation, Bernstein said it expects Rightmove to deliver sustainable growth and shareholder value over the coming years.