PEXA Group Ltd
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$56.88 | Mbgsv | Ndvnhzczyt |
Pexa Earnings: Slower Housing Market Normalization a Potential Positive
We maintain our AUD 17.25 per share fair value estimate for wide-moat Pexa, following its third-quarter trading update. The exchange maintained its full-year guidance, which is slightly below our estimates. Specifically, we expected volumes in the Australian housing market to revert to long-term turnover numbers sooner, resulting in more operating leverage. We have adjusted our near-term forecasts and have pushed out market normalization to next year. We think the shares screen as materially undervalued as the market is overly focused on the loss-making United Kingdom business.