UBS upgrades Domain Holdings to Buy from Neutral after CoreLogic reported a 34% jump in November listings, compared with a 25% jump in September; and in response to the company’s share-price retreat.
The broker believes the CoreLogic data signals an acceleration in volumes heading into year-end and upgrades Domain’s FY22 EPS forecasts 2%.
UBS spies room to grow revenue above the rate of listing and potential upside from stamp duty reforms.
Target price is steady at $5.80, the broker doubting the uptick will last.
Sector: Software & Services.
Target price is $5.80.Current Price is $5.18. Difference: $0.62 – (brackets indicate current price is over target). If DHG meets the UBS target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).