REA Group – Value Has Emerged

REA Group is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

The share price has corrected over 40% due to the impact of COVID-19. Earnings will decline over the coming months as restrictions impacting open homes and slower vendor listings bite in the short-term.

You're not a member!  Trial today!

In the medium term, we see scope for a full recovery in the business and therefore, the current share price at 20x forward earnings looks attractive.

 

Author: Leon Hinde

Leon has been working in the financial services industry for 18 years in management and advisory roles. Leon has extensive experience in general advice and dealings involving securities and derivative financial products.

PS 146 Securities & Derivatives, ADA 1 & 2 accreditation, Responsible Manager Certificate. Leon is authorised to provide financial product advice and deal with respect to the following financial products:

· Deposit Products
· Securities
· Derivatives
· Interest in managed investment schemes; and
· Government debentures, bonds and stocks