The property portals battle took a new twist yesterday when broker and investment bank Panmure Gordon put “sell” ratings on both Rightmove and Zoopla.
Panmure Gordon said that OnTheMarket posed more of a threat than had been originally thought.
It said it could hurt the profits of Rightmove and Zoopla more than expected.
The broker put a price target of 1850p on Rightmove and 130p for Zoopla.
Rightmove’s share price moved down yesterday, while Zoopla’s moved up slightly.
In its note to investors, Panmure said OTM looked “flawed” but could be a “noisy neighbour” for some time, and could also adapt its business model.
The broker had previously rated Rightmove as a “buy” but only started coverage of Zoopla Property Group yesterday.
Panmure said its key concern for Zoopla was OTM’s “one other portal”.
Reuters, in reporting the ratings, said that the press had reported the rule “largely being ignored”.
Reuters also said that Zoopla’s shares had risen strongly this week, up by over 20% on Monday and Tuesday when the market took the view that the OTM launch was a “damp squib”.
Yesterday, Zoopla’s shares rose for a third day running, but only marginally by 1.8p to finish at 191.80p.
Rightmove’s share price tumbled almost 3% by 72p to finish at 2371p, losing much of its gains of the previous day. It is next due to report to shareholders on February 27.
Comments (25)
5th Jan Zoopla shares traded at 199p, then set new lows every day until 26th Jan, falling to a record low on that date of 150.8, a drop of 25% in 21 days. They were always going to recover but the crash was far greater than the rise over the last few days.
Two research analysts have rated the stock with a sell rating, three have assigned a hold rating and six have given a buy rating to the company’s stock. Zoopla Property Group PLC presently has a consensus rating of “Hold” and an average price target of GBX 233.80 ($3.51).
"Very interesting article in City Am today about where the battle is really to be won and lost, and it isnt one I have confidence that OTM will really be able to compete in."…Of course not as you are someone with a vested interest pretending to someone on the fence, don't tell me next you will be stating how the TV campaign is not working and your seeing more take on's by bot being OTM. We all understand THE MESSAGE you want to put across!
Complaining about PIE writing this article is like spitting in the wind. PIE exists to inform and this kind of story is of interest to those who operate in our industry. As for those numpties who buy or sell shares based on what an article reports – good grief. If there is anyone to blame, blame the broker !!
There must be plenty of sellers for both but who in their right mind would want to buy either. Greek banking shares look to be a safer option.
More biased reporting! What about the other 12 analysts tracking. I know agents locally to me who sold shares last week based on press such as this and have lost money…this site is becoming a bit of a joke for being so one sided.
Oh ok so EYE is now responsible for share advice!?! How daft you are.
Errr, if you don't like it here angeli, why do you come?
This 1 other portal rule and Onthemarket are such a joke! And Zoopla need to take some responsibility and look after the clients that have stayed loyal. I can't believe some Agents are advertising across all 3 platforms! Zoopla needs to say, you decided not to stay with us, we're removing you from our site!
Who is buying Zoopla shares ?. I wonder…….