On September 15 2008, it was reported by Reuters that UBS has downgraded it recommendation for Rightmove, the UK property portal, from a “neutral” to a “sell”. UBS cut its target price for Rightmove from 310p to 270p.
In annoucing the downgrade, UBS said “The recent results were clearly strong, but Rightmove has a lag into the downturn and we expect it to lag into any upturn. Its fortunes are very much tied to any housing market recovery and with transactions likely to be lower in 2009.”
The impact of the announcement was immediate with the Rightmove share price dropping from a previous close of 304.5p to an intraday low of 283p before recovering slightly to 296.25p at close – down 2.7% on the day.