Morningstar positive about Domain Holdings Australia's consumer solutions segment

Domain Holdings Australia

04/05/2023 22:35

** Analysts at Morningstar raise fair value estimate for
Domain Holdings Australia  DHG.AX  to A$2.35 after its
third-quarter trading update
    ** Brokerage says the property listing firm's update was
largely as expected, with revenue from core digital segment
coming in slightly better than expected
    ** Morningstar says its fair value estimate raise comes on
the back of DHG's consumer solutions segment, as consumers
increasingly look to compare mortgage options
    ** Brokerage expects continued depressed seller confidence
and listings through the rest of fiscal 2023, following Reserve
Bank of Australia's latest interest rate hike
    ** We expect to start to see a recovery in the number of
listings on the market in fiscal 2024, but we see the recovery
in volumes to Domain to be somewhat limited - Morningstar
    ** Five of 12 analysts rate DHG "buy" or higher, six "hold"
and one "strong sell"; their median PT is A$3.44 - Refinitiv
data
    ** As of last close, stock up ~17% this year

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))