Australia's REA gains; UBS lifts PT, upgrades outlook post Q1 result

Domain Holdings Australia

11/11/2024 03:10

(Updates)
    ** REA Group  REA.AX , controlled by Rupert-Murdoch owned
News Corp  NWSA.O , rises 1.1% to A$236.76
    ** UBS raises PT to A$268 from A$236; maintains "buy"
    ** Says Australian property listing firm's Q1 results, above
market estimates, were solid and showed execution
    ** Adds REA set up for depth growth in the rest of FY25
    ** Raises FY25-27 rev estimates by an average of 2%
    ** Brokerage Morningstar says REA shares are currently
overvalued and the firm had a strong start to the year
    ** Says REA has outperformed smaller rival Domain Holdings
 DHG.AX  
    ** Outperformance even more pronounced when considering
Sydney and Melbourne, which saw higher listings growth than
Australia overall, which should have benefited Domain, whose
business is more focused on these cities - Morningstar
    ** DHG shares down 1.9% at A$2.63
    ** REA has risen 29.3% YTD, as of last close

 (Reporting by Rishav Chatterjee and Nichiket Sunil in
Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))