Introduction
We are downgrading our recommendation on Rightmove (OTCPK:RTMVF) (referred here as "RMV") from Buy to Neutral, mostly on valuation concerns, as the share price hits a record high this week. Since our initial Buy recommendation in March, RMV shares have returned 30% (including dividends) in 8 months, significantly outperforming the FTSE All-Share index, which rose by 4%:
Buy Case Recap
Our original Buy case in March was based on RMV’s continuing ability to grow its revenues and earnings at near 10% annually. While RMV's growth has trended down in recent years,