First quarter results were solid with revenue growth of 16% and EBITDA growth of 9%, Deutsche Bank observes.
Guidance for the remainder of the first half is viewed as somewhat subdued, as management indicates it does not expect an improvement in the listings environment.
Operating expenditure growth is expected to continue at a similar rate in the second quarter, leading to minor downgrades to the broker’s forecast.
In the absence of any near-term negative catalysts Deutsche Bank upgrades to Hold from Sell. Target is $49.50.
Target price is $49.50.Current Price is $51.09. Difference: ($1.59) – (brackets indicate current price is over target). If REA meets the Deutsche Bank target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).