Key Points:
- Goldman Sachs initiated coverage of major European online classifieds portals, arguing that fears about artificial intelligence and large language models are overblown.
- Valuation multiples across the sector have plummeted from a historical average of 19x to just 10x in 2026, as estimated by EV/EBITDA. This is due to unjustified disruption concerns.
- The investment bank started Scout24 and Autotrader at Buy, setting price targets of €105 and 557p respectively, while rating Rightmove at Neutral with a 516p price target.
- Massive cash flows, clean balance sheets, and depressed stock prices make the classifieds sector a highly attractive target for private equity buyout activity over the next 12 months.
Global financial heavyweight Goldman Sachs initiated coverage on the major players in the European online classifieds industry on Thursday, June 4, 2026. The investment bank started Scout24 and Autotrader with Buy ratings and assigned a Neutral rating to Rightmove. Goldman analysts led by Adam Berlin strongly argued that investors have let exaggerated fears over artificial intelligence disruption push sector valuations to unjustified lows. The massive selloff in classified stocks has created a highly lucrative entry point for buyers, as underlying business fundamentals remain remarkably resilient against emerging digital threats.
Concerns about large language models (LLMs) disrupting the market have severely damaged sector sentiment. Sector-wide valuation multiples have collapsed from their historical average of around 19x to roughly 10x, based on the estimated 2026 enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA). Skeptics worry that generalist AI tools will soon bypass traditional property and automotive portals entirely, allowing buyers and sellers to connect without middleman platforms. Goldman Sachs analysts pushed back heavily on this assumption, reassuring investors that these digital gatekeepers are far too deeply entrenched for AI to displace.
In their detailed research note, the Goldman team highlighted three main reasons why artificial intelligence does not pose an immediate threat of disintermediation. First, generalist LLMs do not scrape data in real time, making them poorly suited for dynamic real estate and car markets where inventories change hourly. Second, new aggregators attempting to use AI have struggled immensely to build and retain audiences. Finally, the analysts expect self-managed or “do-it-yourself” real estate transactions to remain a tiny, niche segment of the overall market. Because of these structural realities, established classified portals will likely maintain their dominant market share.
On Germany’s leading real estate platform Scout24, Goldman set a bullish price target of €105 per share. The bank forecasts double-digit top-line revenue growth and expects margin expansion to beat current market consensus estimates easily. Analysts pointed to several powerful growth drivers, including a highly supportive German housing market and massive pricing power within Scout24’s professional subscription tiers. The company has also successfully boosted its business-to-consumer (B2C) subscriber base. If growth accelerates, margins could expand by an extra 1.5% to 2% over the next two fiscal years, driving profits significantly higher.
Beyond its strong organic growth, Scout24 offers enticing mergers and acquisitions (M&A) optionality. The company has previously attracted buyout interest from major private equity consortia, and Goldman currently assigns a medium probability that the stock will become a takeover target again. Private equity firms find classified platforms highly attractive due to their incredibly strong free cash flows and unlevered balance sheets. With valuations currently sitting at historical lows, Scout24 represents a prime target for financial sponsors seeking stable, cash-generative digital assets.
For the U.K. used car platform Autotrader, Goldman declared that the company has reached an important inflection point. Autotrader endured a challenging 2025 during which revenue growth slowed down, and the platform lost around 500 active car dealers. Paradoxically, Goldman argues that a softening U.K. used car market will actually work in Autotrader’s favor in 2026. When consumer demand cools, used vehicles sit on dealer lots for much longer, increasing the average “days-to-sell” metric. This trend forces dealers to rely much more heavily on Autotrader’s massive lead-generation network to move their inventory.
To prove Autotrader’s unmatched market dominance, Goldman’s research provided a stark mathematical comparison. Their analysts estimate that it takes 19 days longer to sell a used vehicle in the United Kingdom without advertising on Autotrader. This translates to an estimated return on investment of roughly 117% for car dealers who pay to use the platform. Based on this robust value proposition and the expected return of dealers to the platform, Goldman initiated coverage of Autotrader with a Buy rating and set a price target of 557p per share.
Goldman assigned a more cautious Neutral rating to U.K. real estate portal Rightmove, setting a price target of 516p per share. Analysts acknowledged that Rightmove’s valuation looks incredibly cheap, trading at just 10x EV/EBITDA, which aligns with the depressed sector average. However, they warned about several near-term risks in the broader British housing market. Rising mortgage rates, partly driven by geopolitical volatility and the onset of the conflict in the Middle East, are putting heavy pressure on estate agents. This difficult economic backdrop could shrink total agent numbers and restrict average revenue per advertiser (ARPA) growth.
Due to these regional housing headwinds, Goldman’s internal forecasts are noticeably more conservative than the rest of the market. The bank’s full-year revenue estimates for Rightmove currently sit 1% to 3% below the broader consensus. While Rightmove remains the undisputed market leader in U.K. property listings, the immediate macroeconomic environment will likely limit its short-term stock performance. Investors looking for maximum upside may find better opportunities in Scout24 or Autotrader, which benefit from more supportive local dynamics.
Across the entire European classifieds industry, Goldman expects M&A activity to remain a dominant and highly influential theme. The analysts stated they would be very surprised if the market did not see continued deal activity over the next 12 months. This prediction aligns with recent historic moves in the sector, such as the massive €14 billion take-private acquisition of Oslo-based classifieds giant Adevinta by private equity firms Permira and Blackstone. The combination of rock-solid balance sheets, high cash generation, and deeply depressed valuations will continue to make these tech platforms irresistible targets for global buyout funds.
