New for-sale listings in Australian capital cities continue to slide, which will result in lower depth listings in the second half. This leads the broker to downgrade REA earnings forecasts ahead of an expected recovery later in the calendar year.
The broker’s target price remains unchanged at $89.57 following a 20% increase in the modelled valuation of Move Inc, owner of a property portal in the US. Add rating also unchanged.
Sector: Media.
Target price is $89.57.Current Price is $75.12. Difference: $14.45 – (brackets indicate current price is over target). If REA meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
