REA finally caught our attention for the correct reasons yesterday as the stock gained +2.9%, taking it back within striking distance of its fresh 7-week highs. This is another stock that’s rotated sideways for many weeks and after shaking off a slightly weaker quarterly update 2-weeks ago, which came in around 4% below expectations, the stock looks/feels good i.e. we like stocks that can dismiss/rally on bad news. Also, importantly so far the business has managed to push through higher prices with a national price rise of 6% and this is providing support during a challenging period for Australian property.
- We can see REA “popping” above $140 into 2023 i.e. over +15% higher.
MM remains bullish and long REA
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