Rightmove: Returning to 52-Week High After 2024 Results
Company Update (RMV LN) (Buy): Its highly predictable business model delivered again, and EPS is likely to resume growing at 10%+ this year.
Highlights
Revenues grew 7% across the group and in the key Agency segment.
Strategic Growth Areas grew 27.9% and added 1.4 ppt to group growth.
Still dominant market #1; CoStar made little financial progress in the U.K.
Shares at 26.5x 2024 EPS; Dividend Yield is 1.4%, and buybacks continue.
At 688.6p, we see a 48% total return (11.3% IRR) by 2028 year-end. Buy.
Introduction
We review our Buy rating on Rightmove after 2024 results last week (February 28). Shares have risen by 6.8% since results, and are now just 3.3% lower than the 52-week high reached last September during REA’s bid attempts:
Rightmove Share Price (Last 1 Year)
Source: Google Finance (08-Mar-25).
Rightmove is a small position in our “Select 15” model portfolio, having been reinserted in November 2024 after we took profits during REA’s bid attempts in September 2024. The position currently shows a 10.5% gain (with dividends). We also held Rightmove in the model portfolio between July 2023 and September 2024. Our real-life holding history is similar. We first published research on Rightmove in 2019, and the current Buy rating dates back to October 2021.
Rightmove’s highly predictable business model delivered again in 2024, and 2025 guidance points to a resumption of 10%+ annual EPS growth. We believe Rightmove to be one of the best defensive assets around.
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