RBC Capital has raised its price target on Rightmove PLC (LSE:RMV) to 805p from 750p, citing a clearer growth path following the company’s half-year results.
The bank acknowledged some investor scepticism after the earnings call but said it saw more to like in the update, describing the portal as “the silver lining without a cloud.”
The price target upgrade is underpinned by improving revenue visibility across strategic growth areas, notably in rentals and mortgage services.
RBC believes these could meaningfully expand the long-term runway for the business, even as traditional estate agency revenues mature.
Rightmove reported a 10.2% rise in first-half revenue, with full-year guidance maintained at 8–10% growth.
RBC sits at the lower end of that range with an 8.8% forecast, expecting second-half growth to ease slightly against tougher comparables.
Underlying operating margins remain high at around 70%, while adjusted earnings per share for 2025 are forecast at 29.1p.
The research also highlights new product areas aligned with policy developments such as the Renters Reform Bill, as well as potential in financial services.
That said, RBC sounded a mild note of caution about the company’s increasing use of buzzwords and its pace of investment in artificial intelligence.
“Margins now are lower than when AI was just a pipe dream,” the note observed, suggesting Rightmove should not lose sight of its core strengths.
RBC trimmed its earnings estimates slightly, largely due to lower-than-expected performance in the “other revenue” segment, but upgraded forecasts for the new homes business.
Overall revenue expectations for 2025 were lowered by 1.2%, but lifted for 2026.
Rightmove shares have returned to near record highs, but RBC maintains a Sector Perform rating. The stock is trading on 27.4x 2025 earnings, with a free cash flow yield of 3.5% and a dividend yield of 1.3%.
While some question whether the business can keep growing after 25 years at the top, RBC remains confident in the model’s durability.
With estate agents and housebuilders still reliant on the platform, the analysts argue, “perhaps Rightmove is the silver lining without a cloud".
The shares were up 1% at 787.2p.