New Property Portal, On the Market, sees shares rise
The Sunday Times yesterday backed OnTheMarket with a buy recommendation.
The Inside the City column, by Sarah Meddings, said: “OnTheMarket looks as if it might soon get the keys to a bigger market value.
“The upstart rival to Rightmove and Zoopla . . . is ramping up plans to turn a profit.”
The column quotes some arguments and data familiar to EYE readers, concluding that Rightmove and Zoopla have until now enjoyed a duopoly. Meddings goes on: “In recent months, however, analysts say OnTheMarket might give them a run for the money.”
The column quotes from OTM chief executive Ian Springett’s upbeat presentation to last week’s NAEA conference, and also references the legal victory over Gascoigne Halman in the Court of Appeal.
Meddings says the share price of OTM has risen this month after the firm revealed it now has 12,500 branches and will use an allocation of 36m shares to recruit agents to sign long-term deals.
Shares in OTM closed on Friday at 106.5p – down from a high of 181p last May, and adrift from its debut price of 148p when it floated last February on AIM. However, the shares have been ticking up since a low of about 76p last month.
Meddings concludes: “If it can prove it can turn a profit, there should be value ahead. Buy.”
Source: Property Industry Eye