DJ REA's Momentum Justifies Hold Rating Despite Valuation -- Market Talk
0147 GMT - REA Group's earnings momentum justifies a continued hold rating for the stock even though it looks expensive, Morgans says. The broker raises target price by 14% to A$131.00 for the stock, which is up 3.8% at A$162.96. Yet Morgans resists downgrading it to reduce, citing the quality of the property-classifieds business and what it says is obvious momentum going into FY 2022. It says the medium-term outlook is well supported by the resurgent Australian property market and expresses excitement about increasing earnings contributions from investments in international markets, including India. REA Group is 62%-owned by News Corp, which owns and publishes The Wall Street Journal and Dow Jones Newswires. (email@example.com; @StuartLCondie)
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February 07, 2021 20:47 ET (01:47 GMT)
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