Silver Sunrise Euro TMT Daily

Research evidence excerpt

Silver Sunrise Euro TMT Daily

ausing some degree of frustration among RMV shareholders. Rightmove’s share price weakness, which began

in Sept 2025, reflects two main factors: (1) elevated investment needs in 2026 as management acknowledges years of

underinvestment, and (2) a broader de-rating across Online Classifieds (the sector now trades ~43% below its own two-year

average on 12-month forward EV/EBITDA (c. 11.5x vs. c. 20.0x respectively), largely driven by investor concerns around

AI-driven disruption and further investment requirements. In our recent deep-dive on Online Classifieds (“Marginalised 2.0”,

see here), we argued that near-term catalysts for a valuation re-rating for RMV are limited and that earnings risk is skewed to

the downside (with potential pressure on margins). Against this backdrop, M&A moves back into focus, with both private

equity and strategic buyers potentially assessing optionality at depressed valuations. While we see limited appetite from

financial sponsors at this stage (see below), REA may revisit the strategic rationale for owning Rightmove. Our base-case

LBO framework highlighted in this note assumes News Corp (REA’s 62% shareholder) is unlikely to accept dilution <50%

(while a fully debt-financed structure is not feasible), and under a 65%/35% debt/equity funding mix, 45% premium (a

multiple similar to last 3y avg) and ~3x leverage (vs. net cash today), we estimate only c. 4% EPS accretion—an outcome we

do not view as sufficiently attractive from a risk/reward profile.

5. Ericsson - 2Q26 Model Update: Surging component costs a key concern. Market not convinced that co. can offset through

contract renegotiation and cost cutting.- Sandeep Deshpande Read Full Note HereMain market concern is whether the