1155 GMT - Rightmove's shares have fallen 17% since CoStar said it would buy rival OnTheMarket in mid-October, an over-reaction considering that Rightmove is likely to remain the number one property portal in the U.K., Berenberg says. The U.K. property website's share price weakness, in fact, provides an attractive entry point for investors, Berenberg analysts say in a research note. "In the past five years, the business has only traded at this level twice: at the start of the pandemic and during the October 2022 selloff. Both of these events proved to be highly attractive entry points to Rightmove, and we think this time is no different," the German brokerage says. Berenberg raises its stock recommendation to buy from hold, and keeps its 605 pence price target. Shares are up 2.5% at 491.0 pence. (joseph.hoppe@wsj.com)
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European Banks Still Face Real-Estate Debt Concerns
1142 GMT - European banks still face pressure from commercial real-estate turbulence despite price drops easing off, ING says. Since central banks started hiking interest rates to fight rising inflation, CRE has been a key area of concern, ING says. Rising rates and falling demand for office space--as more people work from home--have increased vacancy rates and hit property values, with Nordic banks remaining most exposed, the Dutch bank says. "The softness in the CRE market isn't a concern of the past yet," ING's head of financials sector strategy Maureen Schuller writes. "While the worst price declines are leveling off, concerns remain over tougher financing conditions and that high CRE debt maturities will continue to exert pressure on the heavily debt-reliant CRE sector." (philip.waller@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
10-30-23 1303ET
