City analysts are downplaying any threat to Rightmove by OnTheMarket, the portal to be launched in January by Agents’ Mutual.
Catriona O’Grady, of UBS, said: “We believe the concerns are overdone and do not expect the service to have a significant impact on Rightmove.”
Meanwhile, Jefferies International reiterated its ‘hold’ advice on Rightmove shares, although it did cut its target from 2260p to 2177p – lower than the 2275 which Rightmove achieved last week after issuing very strong interim figures.
The analyst also said that shares in Zoopla are currently under-valued and should be a “buy”.
It put its target price at 325p per share, compared with the current 250p – suggesting that those agents that did buy discounted shares are looking at making a decent profit.
Comments (19)
Mr Consumer ….. "who do you list your properties with agent" #1 AM only , #2 AM only, #3 AM only, #4 AM only, #5 AM only, #6 AM only, #7 AM only. Agent #8 RM & Zoopla the number one portals, sir. Err no it isn't the other 7 agents in town are on AM. …….., h'mm what would you do as a seller or buyer? Not rocket since, so take control of your business and make sure the portal does what you want (hope AM are listening), not what they want to do at your expense as present!
In my view consumers shouldn't be asking that question anyway.
But they do and if they don't, your competition will tell how good they are and who good you arent!
RM WILL flounder if the support by the independent agents is withdrawn. Just remember that RM only became big because they provided a web portal for agents who hadn't kept up with the internet revolution and it was these small independents that changed it from being a small insignificant portal primarily used by the big guns. Far too many people consider the web to be the holly grail for selling …. it isn't, it is a part of it. As soon as agents wake up and stop promoting RM or Zoopla for another big web portal, the public will follow and RM and Zoopla will collapse. The big guns may stay with them but the public will move to AM if the independents promote that site more favourably. Advertisers want volume and will switch just as quick as they see it happens. We just need AM to get it right and the support. RM & Zoopla I can guarantee are very very worried and any anylist who says different needs to be a weather forecaster, at least they sometimes know what they are talking about.
What do Analysts know, sitting in remote offices, other than speculation on the effects of share prices. In the real world, the public will go to where the properties are that they are interested in and will learn very quickly after the launch of OTM, that their contact logo can be placed on their desk tops and will be as easy to access as RM & Z. It is likely that some, more adventurous and courageous Agents, in the beginning, will drop both the of the other two and as time goes on, others will follow. This will mean that OTM will be the only place that certain properties will be found and we will see then, whether there is a quantifiable effect on the share values of the duopoly?
Quite right. And, as I've said before, the best place for any portal to advertise itself has to be inside an agent's shop/window/website.
"What do Analysts know, sitting in remote offices, other than speculation on the effects of share prices."
Agreed…….bit of a worry bearing in mind our savings and pension funds rely on them!
Amazing.
I know we are blessed with working in the industry but these analysts seem way off the mark.
Rightmove will lose revenue with many users going back to core membership as it is a good selling market come renewal time. As Ric has previously said ….many add ons don't work or create more business, and agents are finding that out.
Zoopla…I know nothing is certain until it happens but how on earth can Zooplas' revenue not be hit hard with otm? It staggers me that an analyst may not consider otm a threat but fails to predict the immediate impact of the 1 portal rule with 1000's. of branches stopping their subs to , mostly, Zoopla.
Perhaps the city analysts don't believe enough agents really have the guts to ditch-and-switch… How wrong they would be!
I think both sides of the argument are right. I think AM will succeed and find it's place and eventually drop the 'exclusivity' deal when they are established. I also think RM & Z will become more competitive.
On the subject of the 'exclusivity' it has to date been focused on dropping either RM or Z. There has been little clarity over other portals and, when asked, even less over 'what constitutes a portal?' Nethouseprices? Homes24? A local town forum which allows agents ads for a very small fee? Scraper sites who list them without you knowledge?
Just a Monday morning thought over coffee.
Benay: And you are producing figures based on the assumption that the EAT reads are correct, which is patently not the case. They are exaggerated and over-egged, although some of the egg may land on the Choices man's face.
Surely if they were manipulating their read count they would manipulate it so it was impressively better not embarrassingly worse.
The most telling indication is that Simon Shinerock has registered and is posting on Property Industry Eye in order to get any sort of conversation. He posted good riddance to the few of us that were loyal to and supporting EAT before he hauled up and now up he pops here with his unique brand of nastiness. Isn’t it funny how it's not possible to buy friends or respect?
Shortest article ever
Agreed! What Ros should have done is pad it out with the heavy use of quotes from the supplied script…. but then I guess if she had done that we wouldn't be able to compare the read count on PIE with that on EAT and notice that EAT has only got 61% ( at the ime of posting) of the readership of the PIE. I think Ros and Nick would do well to point that out to the advertisers.
Thanks for the heads up Mr Shinerock
and as the morning wears on the gap widdens; EAT down to 43% now.
Best you take a long hard look at the demise of EAT and the loss of it's greatest asset and then work out why the readership has followed Ros Renshaw and the old EAT format and why Property Industy Eye is more widely read and attracting more comments than EAT.
figures dipped down to 41.9% but it seems like the staff are in and on the case… nearly up to 50% now, however I suspect many visits to EAT today will be sad nostalgic visits just to confirm how bad things have gotten.
What’s up Simon? You normally have lots to say (most of it arrogant or nasty or both) don’t you fancy a chat about how well Angels is doing since you got involved there?
And still more readers and contributors than that other site you are associated with!
Most pathetic comment ever.
Awww, wardy – I'm a hurt man. I honestly thought that ANY of mine (when AM-related, at least…) took that accolade! :o(