Domain Holdings Australia 'not in the right price', UBS downgrades to 'sell'

Everflow Resources

23/07/2019 05:03

** Shares of Domain Holdings Australia Ltd  DHG.AX  fall as
much as 7.8% to a near three-month low of A$2.820 
    ** UBS downgrades the online real estate classifieds portal
operator to "sell" from "neutral"; maintains price target at
A$2.75
    ** The brokerage says Domain Holdings has too much priced in
for a listings recovery that has not materialised
    ** Earnings expectations could also be hurt by "extremely
weak" listings, expect revenue declines to continue into H1 on
an underlying basis - UBS 
    ** However, the brokerage remains "hopeful of a 2H20
recovery given the Sydney total listings glut is beginning to
clear and weaker 2H comps (comparisons)"
    ** Latest data from property consultant CoreLogic for the
week ended July 13 showed increasing numbers of buyers are
purchasing auctioned properties compared with the same time last
year  urn:newsml:reuters.com:*:nL4N24L013
    ** Stock posts biggest intraday percentage loss since April
30 in heavy trading, and is top loser in the benchmark S&P/ASX
200 index  .AXJO  
    ** Two of eight analysts rate the stock "buy" or higher,
three "hold" and three as "sell" or lower; their median PT is
A$2.73 – Refinitiv data
    ** Stock up >37% this year, as of last close 

 (Reporting by Aditya Soni in Bengaluru)
 ((Aditya.Soni@thomsonreuters.com; +91 80 6749 1130; Reuters
Messaging: Aditya.Soni.thomsonreuters.com@reuters.net))