REA:ASXREA Group Ltd Analysis
Data as of 2026-05-20 - not real-time
Latest Price
Risk Level: Medium
Executive Summary
REA Group Limited is trading well below its long‑term fair‑value targets (median $210, mean $206.8) despite a strong dividend yield of 1.48% and a healthy payout ratio of 57%. The stock’s price (AU$166.4) sits between the 20‑day SMA (170.37) and 50‑day SMA (165.79) with a neutral RSI (46.9) and a bearish MACD histogram, indicating short‑term pressure while the underlying fundamentals – 6.1% revenue growth, 62.7% gross margin and solid operating cash flow – remain robust. Over the next 12‑24 months the upside potential (~24% to target) and consistent earnings growth support a strategic buy stance for long‑term investors.
Market Outlook
Short Term
< 1 yearKey Factors
- Bearish MACD histogram and RSI below 50 suggest near‑term downside pressure
- Price slipped below prior close (AU$166.4 vs AU$167.8) indicating a short‑term pullback
- Volume trend is increasing but volatility remains high (34.6% 30‑day), raising execution risk
Medium Term
1–3 yearsKey Factors
- Fundamentals remain solid with 6.1% revenue growth and strong margins
- Dividend yield of 1.48% and payout ratio under 60% support cash‑flow stability
- Support at AU$156.85 and resistance at AU$181.10 keep price within a manageable range
Long Term
> 3 yearsKey Factors
- Target mean price AU$206.8 and median AU$210 imply ~24% upside from current levels
- Low beta (0.36) and strong ROE (28.4%) indicate resilient earnings in a cyclical sector
- Industry PE average (17.1) versus REA’s PE (38.4) suggests the market is undervaluing future growth
Key Metrics & Analysis
Financial Health
Technical Analysis
Valuation
Risk Assessment
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.