Stifel has kept its sell rating on Rightmove, the UK's dominant property portal, after revived takeover speculation sent the stock up 9% to 503p.
Analyst Clément Genelot maintained his target price of 356p, arguing the market gains are likely to unwind given the absence of a credible bidder.
The speculation was reignited by a report suggesting Australian rival REA Group might launch a fresh attempt alongside a Gulf-backed investment vehicle.
REA's chairman moved quickly to clear up the matter at the group's annual general meeting, stating explicitly that Rightmove is no longer on its radar following four rejected offers in September 2024.
Other potential suitors face their own obstacles, Stifel noted, with CoStar Group (NASDAQ:CSGP), the US commercial property data firm, likely to face severe antitrust hurdles, while Zoopla is itself up for sale.
Overseas portal operators are also seen as unlikely buyers, given Rightmove's high UK take rates and a pending £1.6 billion lawsuit.
The broker expects classifieds sector valuations to remain capped as artificial intelligence disruption forces strategic buyers to focus internally rather than pursue debt-funded acquisitions.
Rightmove's own £60 million AI investment is viewed by Stifel as a forced technological catch-up rather than proactive reinvestment.
The bank models revenue growth of 6.3% compound annual growth rate between financial year 2025 and 2028, down from a historical rate of 9%.
Adjusted earnings margins are forecast to shrink from 72% in financial year 2025 to 64% by financial year 2028.
