Macquarie downgrades Domain Holdings Australia on soft growth outlook, high expenses

Domain Holdings Australia

21/08/2023 01:10

** Macquarie downgrades Domain Holdings Australia  DHG.AX 
to "underperform" from "neutral", cuts price target to A$2.80
from A$4.00
    ** The property listing firm last week logged a 20.6%
decline in FY EBITDA, missing estimates
    ** Brokerage cuts its forecast due to softer earnings,
higher operating expenses, and challenging market conditions
    ** Cuts EPS forecasts by 19% to 28% for FY24-FY27
    ** Cuts FY24 NPAT view by 28% to A$44.3 mln ($28.41 mln),
and by 21% to A$61.0 mln for FY25
    ** One of 11 analysts rate DHG "buy", eight "hold" and two
"sell" or lower; their median PT is A$3.60 – Refinitiv data
    ** DHG shares trading 1.1% down at A$3.57 
    ** DHG stock up 33.2% this year, as of last close

    ($1 = 1.5596 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))