0229 GMT - REA Group's leading position among Australian property advertisers and double-digit EPS growth isn't enough to keep Macquarie analysts bullish on the stock. Lowering their recommendation to neutral from outperform, they tell clients in a note that the stock looks fairly valued at 51 times earnings, on a 12-month forward basis. The News Corp-controlled company has increased Australian residential revenue by an average of 13% over the last five years, and the analysts anticipate an average of 14% through fiscal 2027 on its products and pricing power. This should generate average EPS growth of over 20% over the same period, they add. Macquarie lifts its target price by 15% to A$265.00. Shares are up 1.1% at A$249.77. News Corp. owns Dow Jones & Co., publisher of this newswire and The Wall Street Journal. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
January 29, 2025 21:29 ET (02:29 GMT)
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