Australia's digital real estate platforms REA Group (ASX:REA) and Domain Holdings (ASX:DHG) could face material risks if listing volumes remain flat over the next five years, Jarden Research said in a Nov. 21 note.

REA Group reported revenue of AU$413 million for the three months ended Sept. 30, an increase of 21% from AU$341 million in the year-earlier period.

Meanwhile, Domain Holdings' new listings growth accelerated in October, with a 19% like-for-like depth revenue growth year-on-year.

The investment firm believes that listing volumes were still potentially above mid-cycle for fiscal 2024 but expects relatively flat listing volumes for the next five years.

"We see material risk to our forecasts if volumes fall to our estimate of mid-cycle volumes for both REA and DHG," the investment firm said.

Jarden Research maintained its underweight rating for REA Group but raised its target price to AU$205 from AU$181. The firm also maintained its buy rating and target price of AU$3.35 for Domain Holdings.

In the same note, Jarden Research said online employment marketplace Seek's (ASX:SEK) valuation could exceed AU$35 per share.

The investment firm believes this is possible if Seek achieves AU$1.82 billion in revenue by fiscal 2028 with a 52% earnings before interest, taxes, depreciation, and amortization margin, without any discount to the growth fund valuation.

Jarden Research maintained a buy rating on Seek but raised its target price to AU$28.50 from AU$28.

REA Group and Domain Holdings shares were each up 1% in recent Tuesday trade.

Price (AUD): $250.72, Change: $+2.35, Percent Change: +0.95%