Rightmove Price Target Slashed As Analyst Downgrades To Underweight

Rightmove’s share price (LON:RMV) is holding onto 0.31% in gains this morning, despite a significant downgrade from Morgan Stanley. The analyst’s revised outlook stems from concerns surrounding the company’s substantial investment in artificial intelligence (AI) and its potential impact on near-term profitability.

Morgan Stanley reduced its rating to “Underweight” from “Equal Weight,” drastically cutting the price target from 815p to 510p.

The primary driver behind these downgrades is Rightmove’s strategic decision to heavily invest in AI technologies. While the company aims to leverage AI for long-term growth and operational efficiency, analysts are wary of the immediate financial implications. The investment plan, which includes approximately £60 million in expenditures between 2026 and 2028, is expected to slow earnings growth in the short term.

Further Downgrades on Wall Street For RMV

UBS also downgraded Rightmove to “Neutral” in November 2025, lowering the price target to 585 GBp from 879 GBp. UBS highlighted that the AI investment plan does not anticipate incremental revenues from AI initiatives between 2026 and 2028, outside of the company’s bundled offerings. This lack of immediate revenue generation from AI has fueled concerns about the return on investment.

JPMorgan are another adding to the negative sentiment by reducing Rightmove’s price target to 500 GBp, maintaining an “Underweight” rating. This revision underscores worries about the financial implications of Rightmove’s AI investment strategy on its short-term profitability.

Jefferies also lowered its price target for Rightmove, assigning an “Underperform” rating and a price target of 465 GBp, reflecting scepticism about the company’s ability to achieve anticipated growth amid increased spending on AI initiatives.

Price Targets

The market’s initial reaction to Rightmove’s AI investment announcement in November 2025 was notably negative. Shares plunged as much as 28% before settling around 12% lower, indicating significant investor apprehension about the strategic shift.

The series of downgrades and price target reductions reflect concerns over short-term profitability, casting a shadow over Rightmove’s near-term prospects.