** Shares of digital advertising co REA Group REA.AX rise 1.5% to A$240.54

** Morningstar maintains its fair value estimate at A$126 per share, despite selloff in the sector following CoStar's CSGP.O initial offer for Domain DHG.AX

** Expectation high for DHG's acquisition approval, driven by unanimous board decision and major shareholder Nine Entertainment NEC.AX's readiness to sell - Brokerage

** Brokerage believes REA would be able to raise prices further without regulatory scrutiny, offsetting intensifying competition from the deal

** Stock up 3.1% YTD

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))