Rightmove (RMV) 796p

Gain to date:  30%

Market Cap: £6.1 billion

In January last year, we argued investors should snap up FTSE 100 property portal Rightmove (RMV) as the stock offered resilient growth and a bargain-basement valuation.

Eighteen months later, Rightmove’s shares have gained 30% and it has rebuffed four takeover attempts from Rupert Murdoch-owned Australian property listings company REA Group (REA:ASX).

The current share price sits just above REA’s final offer of 780p, which Rightmove rejected last September saying it ‘materially undervalued’ the company.

‘Shareholder interests would be better served through the execution of Rightmove’s standalone strategic plan,’ said the UK property portal at the time.

WHAT HAS HAPPENED SINCE WE LAST SAID BUY?

Since these four failed attempts, Rightmove’s share price has gone from strength to strength gaining 21% year-to-date.

Despite the firm expressing caution recently about slower revenue growth in the second half of the year, Shares believes the FTSE 100 firm still has promise.

The company reported sustained traffic growth in the first half of the year (25 July) with a total of 9.1 billion minutes spent on the platform in the period, up 10% and the second-highest on record.

The firm also said technology innovation and AI usage had accelerated in the period, and it had launched a new top-end product called Ascend to help developers of new builds compete for buyers.

WHAT SHOULD INVESTORS DO NOW?

Although the stock dipped slightly after the first half results, we think investors should stay put at Rightmove.

Not only is there every chance the Bank of England will lower interest rates this year, Rightmove has already increased shareholder returns by £112 million with buybacks and dividends.

Moreover, new estate agencies are being created at levels not seen since 2022 and completions are up 22% on last year making it a healthy market for the company. 

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