Morningstar sees potential AI impact on Australia's REA Group

Morningstar

05/03/2026 19:53

** Morningstar changes uncertainty rating to 'high' from 'medium' for property portal REA Group REA.AX, cuts fair value by 8% to A$126 per share

** Investment research firm says AI could erode co's pricing power if it becomes primary means of consumers searching for new home

** Highlights lower software development costs with AI use, lower replication costs amid high competition

** "If AI shortlists properties efficiently, aggregates features, and serves as a virtual buyer agent, the shift in users away from REA Group can drastically lower the value of traditional listings" - Morningstar

** 14 analysts rated 'buy' on average with median price target of A$218.90, as per LSEG-compiled data

** YTD, shares down 9.1%, last closed up at A$165.90

 (Reporting by Nichiket Sunil in Bengaluru)

 ((Nichiket.Sunil@thomsonreuters.com))