REA Group Ltd: FY26 result preview – Limited visibility on volumes, focus on yield and cost offset; assume coverage at OW

研报英文原文证据摘录

REA Group Ltd: FY26 result preview – Limited visibility on volumes, focus on yield and cost offset; assume coverage at OW

Benjamin Jones AC Asia Pacific Equity Research

(61-2) 9003-8627 04 August 2026 J P M O R G A N

benjamin.s.jones@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

REA is the leading property listing platform in Australia with a

monthly average audience share that is almost 2x its nearest

competitor. The company’s strong market position has enabled

significant pricing power, particularly in recent years on the

back of both headline price increases as well as depth through

new product add-ons and features. REA is leveraged to the

Australian property cycle, and thus has benefitted from strong

house price appreciation. However, near-term we are starting to

see some elevated risks driven by: 1) increased competition,

YTD 1m 3m 12m with a well capitalised offshore competitor (CoStar) entering the

Abs -10.8% 15.3% -6.6% -30.5% market by acquiring the #2 property listing platform; 2) an

Rel -15.7% 12.8% -11.1% -34.9%

ACCC investigation into pricing and contract structures; and 3)

Company Data yield growth has been very strong, benefitting from the launch

Shares O/S (mn) 131 and strong adoption of Premiere+. Maintain OW.

52-week range (A$) 265.98-131.07

Market cap ($ mn) 14,982.12 Valuation

Exchange rate 1.43 We have a Dec-26 price target of A$200 for REA, based on our

Free float (%) 37.2%

3M ADV (mn) 0.39 DCF valuation. Our discounted cash flow analysis assumes a

3M ADV ($ mn) 42.1 7.6% WACC and a 3.5% perpetual growth rate. We derive our

Volatility (90 Day) 37 WACC estimate based on the Capital Asset Pricing Model

Index ASX 100

BBG ANR (Buy | Hold | Sell) 9|5|1 (CAPM), which assumes a 10-year risk-free rate of 3.5%, an