Brokers weigh in on the REA (ASX:REA) share price after third quarter results

Why big brokers think the REA Group Ltd (ASX: REA) share price could go higher or lower after its third quarter results
The post Brokers weigh in on the REA (ASX:REA) share price after third quarter results appeared first on The Motley Fool Australia. –

young woman reviewing financial reports at desk with multiple computer screens

The REA Group Ltd (ASX: REA) share price is climbing higher today, up 2.13% to $159.38 at lunchtime on Monday. 

This follows a fairly positive reaction after releasing its third quarter results last Friday, with REA Group shares finishing the week in the green, up 1.4% for the session.

Alongside Goldman Sach’s review of REA shares, here’s what other big brokers are thinking. 

Big brokers weigh in on the REA share price 

Credit Suisse 

REA’s third quarter results came in slightly ahead of Credit Suisse’s estimates, largely driven by better-than-expected growth in residential listings. 

More recently, the Australian property market has experienced a significant deficit in listing volumes. CoreLogic reports that total listings have remained tight in April due to the strong absorption from sales, leaving listings volume 26% below the 5-year average. 

Credit Suisse expects a rebound in residential listing volumes, forecasting a 20% year-on-year increase in volume in the second half. The broker expects the company’s earnings to continue to benefit from a cyclical recovery in residential listings and developer volumes. 

Credit Suisse increased its REA share price target from $136.70 to $148 with a neutral rating. 


UBS was another broker that was surprised by REA’s 13% increase in revenues and 10% increase in earnings for the March quarter. Looking ahead, the broker expects the June quarter to cycle a significant jump in year-on-year listings. 

The broker retained its neutral rating for the REA share price but provided the most upbeat target price of $160. 


It was a mixed reaction from Morgans as the strong rebound in domestic listings was offset by slightly increased cost growth and lower depth penetration.

The broker was hold rated on REA shares, citing that its current valuation adequately balances both short and long term growth. The broker increased its target price from $131 to $139.4. However, this represents a downside of more than 10% compared to the current REA share price. 

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Brokers weigh in on the REA (ASX:REA) share price after third quarter results appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!