Berenberg reiterates 'sell' on Rightmove

The bank, which lifted its price target to 400p from 385p, said it was "very optimistic to assume everything will be fine from here".

It pointed out that after a steep rebound, Rightmove trades at a price-to-earnings of 32x on consensus 2021 earnings per share, earnings which consensus expects to be broadly stable compared to 2019.

"We, however, believe there are material risks to the financial health of estate agents when: a) furlough schemes end, and b) the stamp duty holiday ends at the end of March 2021," it said. "These risks add to an industry already struggling pre-Covid-19 (with numerous branch closures), and will add further pressure on either Rightmove’s pricing potential and/or agency customer numbers."

Berenberg said near-term discounts are papering over the cracks and that both cyclical and structural headwinds will resurface sooner rather than later.

"With substantial uncertainty ahead, and with now clear evidence of the cyclicality of Rightmove’s business, we believe a materially lower multiple is warranted," it said.

At 0925 BST, the shares were down 3.4% at 609.80p.