REA has undoubtedly been in the wrong place at the wrong time being classified as a growth stock with exposure to the very nervous Australian property market although a 46% drop does feel fairly heavy-handed. The stocks trading on an Est P/E for 2022 of 31x and we feel its entered the accumulation zone aided by its dominant market position which yields pricing power plus following recent comments from NSW Premier Dominic Perrottet we can see a rosy future for this high quality digital real estate business:
- Perrottet wants to scrap stamp duty in NSW which MM believes will ultimately be successful and lead to greater turnover of residential real estate which is excellent news for REA medium term.
MM likes REA medium term into weakness
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