Time for investors in Rightmove to move on, Credit Suisse believes

5th Mar 2015 10:30

As competition in the property portal space heats up, and on the back of a 54% gain in the share price, the time may have come for investors in Rightmove to move on, Credit Suisse believes.Nonetheless, the Swiss broker continues to like the sector, both in terms of the cyclical and structural growth stories. Even so, it believes the level of the company's current valuation now looks fair.Indeed, Credit Suisse's price target has been lifted to 3,220p from 2,700p beforehand, putting the shares on a price-to-earnings multiple of 28 times 2015's profits.For that reason, and "until we see how the competitive landscape develops" analyst J. Barnet-Lamb believes it best to lower his recommendation on the shares to 'neutral' from 'outperform'.Barnet-Lamb added that guidance for flat year-on-year membership in fiscal year 2015, despite pressure from Agents' Mutual OnTheMarket (OTM) is "strong".The analysts also noted that given the higher share price the company's share buy-back programme becomes less accretive.As of 10:29 shares in Rightmove were lower by 1.35% to 3,000p.