REA – Credit Suisse rates the stock as Neutral

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Credit Suisse had expected a recovery in Sydney and Melbourne property markets would support volumes but suspects REA Group could lag Domain Holdings ((DHG)) because of its broader national exposure.

The broker is of the view that the recent strength in listings will allow the company to reinstate its price increase at the start of 2021. On this basis 3.5% yield growth is expected in FY21.

Credit Suisse retains a Neutral rating and raises the target to $110.30 from $94.50.

Sector: Media.

Target price is $110.30.Current Price is $107.32. Difference: $2.98 – (brackets indicate current price is over target). If REA meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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