REA Group Ltd
REA: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$945.00 | Kbvh | Pqttdcmg |
REA Group’s Earnings Rebounding as Expected Following Reduced COVID-19 Restrictions
We have maintained our earnings estimates and AUD 80 fair value estimate for REA Group following its strong first-half result. As we expected, REA’s earnings are rebounding strongly following the very weak second half of fiscal 2020 and subsequent easing of COVID-19 movement restrictions. Although the lockdown in the state of Victoria impacted the first quarter of fiscal 2021, the rebound in the second quarter was strong. Despite the strong first-half result, we’ve maintained our forecast for a 12% increase in underlying NPAT in fiscal 2021.