Analyst Marcus Diebel of J.P. Morgan maintained a Sell rating on Rightmove (RMV – Research Report), with a price target of p590.00.
Marcus Diebel has given his Sell rating due to a combination of factors affecting Rightmove’s stock. Primarily, the increased probability of a global recession, as estimated by JPMorgan economists, poses a significant risk to companies like Rightmove that are sensitive to economic downturns. This macroeconomic backdrop suggests potential challenges for Rightmove in maintaining its revenue growth and profitability.
Additionally, the market dynamics have shifted, with investors becoming more cautious and selective about their investments, particularly in sectors that are not considered defensive. Rightmove’s exposure to these economic headwinds, coupled with its current market valuation, may not offer a compelling risk-reward profile. Consequently, Marcus Diebel advises a Sell rating, reflecting concerns over the stock’s potential underperformance in the current economic climate.
In another report released on March 25, Barclays also maintained a Sell rating on the stock with a £5.80 price target.