The company delivered a stronger-than-expected March quarter revenue and earnings outcome. UBS flags the launch of new agent branding products, which could add new revenue once fully penetrated and the Hometrack accretion, likely to be minimal because of the additional D&A.
The broker maintains a Sell rating and considers the stock expensive. Target is raised to $80 from $68.
Target price is $80.00.Current Price is $88.71. Difference: ($8.71) – (brackets indicate current price is over target). If REA meets the UBS target it will return approximately -11% (excluding dividends, fees and charges – negative figures indicate an expected loss).