REA Group, the Australian property listings company, has expressed interest in acquiring UK housing portal Rightmove. This move has caused a surge in Rightmove shares, reaching as high as 696p, a 25% increase from previous levels. If successful, this acquisition would create a global and diversified digital property company, combining the strengths of both businesses.
Analysts believe that falling interest rates could support the UK housing market, leading to more business for Rightmove. Jessika Pok from Peel Hunt has a price target of 630p for Rightmove, indicating significant growth potential. The stability of Rightmove’s core classifieds business and opportunities in other revenue streams make it an attractive investment option.
On the other hand, anxiety over demand from China has weighed on the oil price, with Brent crude dropping to $76.43 per barrel. Chinese manufacturers have reported a drop in export orders, indicating weakening overseas demand. However, confidence levels in China’s manufacturing sector rose to a three-month high, with improvements in price pressures.
REA Group’s interest in Rightmove demonstrates the potential for growth and innovation within the property sector. Should this acquisition go through, it could yield significant benefits for both companies and the global property market. Investors and analysts are closely watching this development, as it could signal a positive turn for the UK housing market and the broader industry.
Source
Photo credit www.theguardian.com