Weakness in property listings has become a familiar theme, Credit Suisse notes, and CoreLogic data show that in the second half of FY19 new listings in the capital cities were down -17%, with Sydney down -24% and Melbourne down -22%.
The broker finds no signs of a near-term recovery and expects Domain Holdings will be the most affected, given its greater exposure to the Sydney/Melbourne markets. Underperform rating and $2.30 target maintained.
Sector: Software & Services.
Target price is $2.30.Current Price is $2.93. Difference: ($0.63) – (brackets indicate current price is over target). If DHG meets the Credit Suisse target it will return approximately -27% (excluding dividends, fees and charges – negative figures indicate an expected loss).