Tag: ASX:REA

REA Group

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REA Group reported 1H FY22 revenue growth of 25% or $109mn with EBITDA of $84mn. Full-year EPS is forecast to be up 20%+ on the prior year and the stock now trades on a forward yield of 1.2%.

Buying support is likely to rebuild within the $115 to $135 price range.

REA Group is among the best-performing stocks in our ASX 100 model portfolio, with the share price up 67% since being added in September last year.

REA Group has acquired 100 percent of the shares in Mortgage Choice for $1.95 a share, valuing the company at $244 million. REA is now focused on accelerating its financial services strategy to become a leading player in the home loan market.

REA is a high quality business with terrific growth potential, however, the 65x PE multiple is a little rich and we recommend waiting for the next Algo Engine buy signal.

5/11 update: REA Group delivered 22% revenue growth for Q1 FY22.

REA Group is under Aglo Engine buy conditions and among the best-performing stocks in our ASX model portfolio. REA was added to the ASX 100 model in September last year at $107.80 and is up 48.40%, (including dividends), to $159.42.

FY21 Revenue increased 13% to $927m and EBITDA increased 19% to $564m. Net Profit After Tax (NPAT) saw a similar lift of 18% to $318m.

The div increases to $0.72 per share and the ex-dividend date is 26 August.

We recommend buying the dip in REA, so please watch for the next Algo Engine buy signal. Long-term earnings growth will be underpinned by the recent acquisition of mortgage broker, Mortgage Choice.

REA Group is among the best-performing stocks in our ASX 100 model portfolio, with the share price up 57% since being added in September last year.

REA Group has acquired 100 percent of the shares in Mortgage Choice for $1.95 a share, valuing the company at $244 million. REA is now focused on accelerating its financial services strategy to become a leading player in the home loan market.

REA is a high quality business with terrific growth potential, however, the 65x PE multiple is a little rich and we recommend waiting for the next Algo Engine buy signal.

REA Group is under Algo Engine buy conditions since switching in mid-September at $106.

REA has reported 1Q21 results ahead of analysts estimates with revenue of $196mn nd EBITDA of $124mn.

Although the management outlook statement remains positive, we have some concerns about valuation and consider the stock near resistance.

REA Group reported FY20 revenue of $820m versus $879m and net profit of $112m.

REA Group is under Algo Engine sell conditions. We expect selling pressure to increase at $109.