Analysts at J.P. Morgan have turned bullish on the shares of ASX-listed REA Group (AU:REA) and upgraded their rating from Hold to Buy. J.P. Morgan also raised its price target on REA stock from AU$190 to AU$240, forecasting 6% upside potential. The upgrade comes ahead of REA Group’s first-quarter FY25 results, set to be released on November 8. REA Group shares gained 0.061% as of writing.
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REA Group specializes in property buying, selling, and leasing. The company is primarily owned by Rupert Murdoch’s U.S.-based media group News Corp (NWSA).
JPMorgan Sees More Growth Ahead for REA
According to J.P. Morgan analysts, REA group is poised to deliver strong yield growth compared to its rivals like Domain Holdings (AU:DHG). This is mainly due to its larger share of customers’ spending and geographic reach. Additionally, the analysts highlighted that REA’s premium Luxe product is thriving, while Domain is more focused on lower-value segments.
J.P. Morgan analysts further noted that although REA’s valuation seems high, it looks more reasonable when considering the company’s earnings growth.
Overall, the broker remains optimistic about REA’s dominant presence in the market.
REA Group Sets Sights on Rightmove for Growth
Of late, REA Group has been in the news for its acquisition efforts for UK-based Rightmove PLC (GB:RMV). In September, the company made a cash and stock offer for Rightmove. However, Rightmove later declined the offer, stating it was undervalued.
Through this deal, REA Group intended to build a global, diversified digital property platform with leading market positions in Australia and the UK. REA Group finally abandoned its efforts after Rightmove turned down its fourth offer.
Is REA a Good Stock to Buy?
On TipRanks, REA Stock has been assigned a Moderate Buy rating based on six Buys, five Holds, and one Sell recommendation from analysts. The REA Group share price target of AU$213.13 is 6.16% below the current trading price.
