Following Domain Holdings’ 1Q trading update, which beat Morgans expectations, the broker believes the marketplace strategy is starting to bear fruit. Forecasts are upgraded on improved depth penetration and higher-than-expected growth in Agent and Consumer services.
The broker lifts its target price to $5.36 from $5.22 and maintains its Hold rating on valuation. Management pointed to improvement across all markets in depth penetration, with a special mention for the growth of the top-tier ‘Platinum’ product.
Sector: Software & Services.
Target price is $5.36.Current Price is $5.71. Difference: ($0.35) – (brackets indicate current price is over target). If DHG meets the Morgans target it will return approximately -7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
