REA Praised for Its Continued Cost Discipline

Dow Jones
08/07

0244 GMT - REA Group's gets praise from Jarden analysts for its continued cost discipline. With an unchanged neutral rating on the stock, the analysts call out a slowdown in domestic operating cost growth as a highlight of the Australian property advertiser's annual result. They also like the renewed capital discipline shown by its increased dividend and A$200 million share buyback. However, they warn in a note that fiscal 2027 buy yield--a key measure of ad profitability--could hinge on News Corp-controlled REA's exposure to the currently underperforming Sydney and Melbourne markets. Target price rises 2.8% to 183.00 Australian dollars. Shares are up 0.5% at A$172.94. News Corp is the parent company of Dow Jones & Co., publisher of The Wall Street Journal and Dow Jones Newswires.

 

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