Numis upgrades Rightmove from 'add' to 'buy'

Rightmove said that trading since July has been ahead of consensus expectations, and it now anticipated average spend per advertiser for the full year to reach between £112 and £116, exceeding the previous guidance of £103 to £105.

Looking ahead, Rightmove maintains confidence in its full-year outlook for 2023, expecting revenue growth in the range of 8% to 10%, underlying operating profit growth of 7% to 8%, and an underlying margin of approximately 73%.

Numis said this pushes up its estimates a little, lifting its target price on the stock fro 660p to 675p.

"Shares have come under considerable pressure on the back of the recent announcement that CoStar is looking to acquire OntheMarket. We feel the risk to Rightmove is overstated, see the current fall as an attractive entry point," Numis said.

The stock was up 6.3% at 541.4p by 1023 GMT.