The 1H result for REA Group was better than Macquarie expected and the analyst is slightly more positive on listings growth.
While Macquarie sees valuation support emerging after a share price pullback, the Neutral rating is maintained on downside risk to the consensus forecast in the medium term. The broker also points to a moderating residential market.
The target price eases to $158 from $162.
Sector: Media.
Target price is $158.00.Current Price is $143.45. Difference: $14.55 – (brackets indicate current price is over target). If REA meets the Macquarie target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
