First half results were ahead of Deutsche Bank’s estimates. The beat is attributed to margin expansion but, with management indicating costs growth will be much higher in the second half, Deutsche Bank makes few changes to forecasts.
As the company indicated January volumes were subdued, the broker is reluctant to expect higher revenue growth in the second half at this stage. A Hold rating is retained. Target is steady at $52.30.
Target price is $52.30.Current Price is $49.36. Difference: $2.94 – (brackets indicate current price is over target). If REA meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).