REA GROUP LIMITED (REA)
Share Price Analysis and Chart

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11/05/2026

1

Buy

$200.85

26.47%

Citi's FY27 revenue forecasts for REA Group are trimmed by around -2% following 3Q results to reflect weaker listing volumes and continued softness in India, partly offset by lower cost growth.

The broker highlights a measured rollout of AI-driven search, which could support cross-sell opportunities across financial services and media.

Citi retains a Buy rating, increasing its target price to $200.85 from $199.

The broker's initial take on 3Q results follows.

Having returned from a call with management at REA Group, Citi analysts took home several positives, including the notion that costs are quite flexible and management can lower them under tough conditions (as in: now).

In light of rate hikes and upcoming policy changes, the analysts are not surprised management is cautious about the immediate outlook.

Management mentioning conversational search opening up cross-sell opportunities to financial services is viewed as "interesting" and could be positive from a monetisation perspective, the analysts conclude.

Earlier response from today:

Post a first glance, Citi observes REA Group announced 3Q26 earnings (EBITDA) of $220m, up 11% or 16% excluding M&A, which was a -3% miss on the analyst's forecast due to revenue-recognition impact in the core residential business.

The Indian performance continued to be weak.

Buy-yield growth was in line at 14% growth but down from 15% in 2Q26 from lower geographic mix benefit. April listings rose 19% y/y, which is attributed to easier comps but infers the group is on track for a -1% y/y decline in listings against guidance of -1% to -3% decline.

Opex guidance was lowered, another positive. On the negatives, Citi points to lower Australian residential revenue than anticipated, coming in at 12% growth versus forecast of 14%. Housing also remains an underperformer, revenue fell -3% y/y.

The broker sees scope for the share price to underperform initially but much of the 3Q26 misses reflect timing issues. Consensus earnings forecasts are not expected to change.

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25/05/2026

3

Neutral

$178.00

12.08%

Jarden retains a Neutral rating for REA Group with a $178.00 target price following a monthly online classifieds industry update.

National listing volumes surged 19.4% year-on-year in April, aided by a softer comparative period when the Easter break coincided with Anzac Day.

Growth was robust across all major markets, with capital cities expanding 23.3% while regional areas increased by 12.8%.

Management guided to an overall volume contraction between -1% and -3% for FY26, which appears conservative to the broker given  strong April momentum.

The broker highlights the company trades on an estimated FY26 price-to-earnings multiple of 32.8x, supported by a 15% two-year earnings per share compound annual growth rate to FY28.