REA Group Bear Sees Mismatch Between Property Buyers and Sellers

Dow Jones
Sep 18

0333 GMT - REA Group's bear at Bell Potter sees evidence of an ongoing mismatch in price expectations between Australia's property buyers and sellers. With an unchanged sell rating on the News Corp-controlled property advertiser, analyst Michael Ardrey tells clients in a note that REA's listings decline accelerated in August despite a weak year-earlier period. He flags low auction clearance rates and an increase in the time properties are taking to sell as evidence of a difficult selling season. He acknowledges that REA has shown it can generate strong results in challenging environment, but sees significant risk to volumes and earnings relative to guidance. Bell Potter raises its target price 0.7% to 148.00 Australian dollars. Shares are down 2.0% at A$156.07. News Corp is the parent company of Dow Jones & Co., publisher of The Wall Street Journal and Dow Jones Newswires.

 

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