Rightmove (LSE: RMV) has just been demoted to the FTSE 250 in June, but it could be a candidate for one of the quickest bounces right back into the FTSE 100. The review happens every quarter, with top-tier stocks that have fallen in value replaced by leaders in the mid-cap index.
And if one broker is to be believed, Rightmove could soon move right back up again. That broker is RBC Capital Markets — specifically managing director Anthony Codling — who set a 765p target on the stock. From the price at the time of writing, that could mean a gain of around 80%!
We’ve had a few recent broker notes, however, that are less enthusiastic about Rightmove’s near-term future.
Goldman Sachs, for example, puts a 516p price on it — only about 18% ahead. And JP Morgan thinks the shares could fall to 404p. Analysts do differ over where they think share prices are likely to go. But we’re seeing a hefty divergence here, so what’s it all about?
Move over, ChatGPT?
Perhaps surprisingly, the disagreement is all about AI. And it was triggered by Rightmove’s investor day last November…
AI is now becoming absolutely central to how we run our business and plan for the future. We are already working on a wide range of exciting AI-enabled innovations for the benefit of our partners and consumers, and see vast potential utilising our leading reach and connected data. We are investing to accelerate our capabilities, which we are confident will create an even stronger platform and higher-growth business over time. We aim to further advance our leading digital position in the UK property ecosystem.
— CEO Johan Svanstrom, 7 November 2025
Since then, a number of brokers have been spooked by the risk — and by competition from more general AI services like chatbots. They started to downgrade their recommendations. A sell-off by investing institutions followed. And the Rightmove share price has now fallen 45% in the past 12 months. Its current market cap of £3.2bn is just not up to FTSE 100 levels.
An overreaction, much?
Some analysts, though, think the fear stemming from AI ambitions is overblown — and that Rightmove is now undervalued.
At the time of that 765p price target, RBC’s Codling said “Mortgage rates may be high and the geopolitical climate uncertain, but our fascination with property remains and when people want to look for, or just at, property they turn to Rightmove“.
So what’s my take? The risks seem clear enough here. The future of AI is potentially very exciting, but also more than a bit scary. And I reckon it’s likely to lead to some big winners… and some big losers.
I can see two contrasting options for services companies like Rightmove. Either embrace the inevitable rise of AI, or risk being swept aside by it. Bold investors might see wisdom in Rightmove doing the former and consider getting on board. Me? I’m going to wait for first-half results due on 31 July.
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Alan Oscroft does not hold any positions in the companies mentioned.
