Sprouts Farmers Market closes $600 million revolving credit facility
On Friday, HSBC analyst Rahul Chopra reaffirmed a Buy rating on Rightmove Plc . (RMV:LN) (OTC: OTC:RTMVY), with a consistent price target of GBP7.75. Chopra highlighted the company’s solid performance and its prospects for strategic growth. Rightmove (LON:RMV)’s digital moats and attractive operating margin have not only drawn competition but also an acquisition offer for the group.
Chopra noted that as competition concerns wane, the focus for 2025 is expected to shift towards strategic growth. Rightmove is poised to explore opportunities beyond residential listings, including commercial, mortgage services, rental services, and data services. While 2024 and 2025 are anticipated to be years of investment, the end of 2025 is seen as a pivotal moment before a predicted acceleration of growth starting in 2026.
The analyst pointed out that despite Rightmove’s current revenue from non-residential services being only 11%, the company aims to increase this to a 25% revenue mix by 2028, a target HSBC considers achievable based on the performance of peers in other geographies. Chopra believes that the market is currently undervaluing Rightmove’s potential, especially considering its rule of 40 benchmark, which balances growth and profitability.
HSBC’s analysis suggests that Rightmove’s valuation could reach approximately 1,000-1,065p if the company fulfills its growth ambitions. This valuation reflects the potential upside from the company’s planned diversification away from its core residential business, which could serve as a catalyst for future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.