Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
REA Group (ASX: REA) – now at a more attractive entry point
- REA - like other high valuation stocks - has sold off sharply in recent months; at current share price levels of ~A$48, REA is now some 26% below its July 2016 high of over A$65.
- We note the IRESS consensus target price of A$59.79 indicates some 25% upside potential; with a forecast dividend yield of 2%, REA offers a total return of ~27%.
- While not cheap on a PE basis (FY17E PE of 24.8x), but we believe its pricing power and earnings growth (FY17E EPS growth of 18%) justifies its elevated rating.