Rightmove PLC (LSE:RMV) shares climbed 5% to 453.32p on Thursday after the property portal reported full-year results in line with expectations and announced a larger-than-anticipated share buyback, prompting analysts to flag the stock as attractively valued despite a subdued run over recent months.
The move higher came as Peel Hunt reiterated its 'buy' recommendation and 885p target price on the stock, arguing that Rightmove's shares are trading at their lowest earnings multiple in a decade and that concerns weighing on the valuation are misplaced.
"The shares have been weighed down by broader AI concerns, but we see no evidence of any impact on the business," said Jessica Pok, analyst at Peel Hunt.
"We expect another solid year of growth, supported by further product development that should strengthen its market position."
Peel Hunt noted that all of Rightmove's 2025 metrics came in line with its forecasts, with revenue of £425 million and underlying operating profit of £298 million both rising 9%, and the operating margin holding steady at 70%. Adjusted earnings per share grew 11% to 29p.
The broker highlighted a stronger-than-expected capital return as a positive surprise, with Rightmove announcing a £90 million share buyback to be completed by the end of July 2026, ahead of what analysts had modelled.
Peel said the higher assumed buyback had lifted its earnings per share forecasts by 2-3% for 2026 and 2027, with its 2026 net cash estimate now standing at £22 million.
It noted that group average revenue per advertiser rose 6% to £1,621, total membership edged up 1% to 19,272, and strategic growth areas, including commercial property, mortgages and rental services, expanded 25% to £29 million.
Management reiterated guidance issued at its November capital markets day, pointing to revenue growth of 8-10% in 2026. Margins are expected to dip, reflecting the start of a three-year, £60 million investment programme in technology and product innovation.
Rightmove said it anticipated underlying operating profit growth of 3-5% this year, with stronger profit growth expected in subsequent years.
At 14 times Peel Hunt's 2026 earnings estimate, Rightmove trades at a material discount to its own history, a gap the broker believes the market will close as the investment cycle runs its course and the company's AI-powered product roadmap matures.