Broker snap: Rightmove price target hiked

21st Aug 2009 13:20

Panmure Gordon has raised its price target on property web site Rightmove after the company's strong interim results.Panmure Gordon said Rightmove's first-half results were 'materially better than expected,' with the company now on track to achieve 2009 earnings before interest and tax not far short of 2008's levels, despite the continuing slump in the housing market. This is an implicit upgrade of around 15% to 20% on prior expectations, Panmure Gordon's Alex DeGroote reckons.In response to the figures the broker has upgraded its earnings per share forecasts for the current year by 10% and for 2010 by 15%.Panmure Gordon has reiterated its 'buy' recommendation and lifted its price target from 450p to 600p. 'RMV [Rightmove] has easily the most attractive operating model we have ever seen, and we are in the early stages of a powerful upgrade cycle,' DeGroote concluded.