REA or realestate.com as most people think of it has been hit with the double headwind of being associated with the struggling tech sector and Australian housing which of course most pundits are certain will crash over the coming months. However, after correcting over 32% there’s certainly a large degree of negative news already built into the stock although an estimated valuation of 40x for 2022 most definitely doesn’t place it in the cheap basket.
This is a quality company with pricing power, it delivered an excellent result in February with headline revenue up 37% to $590mn and NPAT up 30% for the first half. We see the current share price hiccup as an opportunity as opposed to a reason to panic, interest rates are normalising as will the property market but when the ashes settle we believe this is a good area to venture into the stock.
MM likes REA around $125
Add To Hit List
