Upon review of FY21 results, factors underpinning listings into FY22 were softer than Macquarie expected for REA Group, which underpins the broker's EPS downgrades.

However, earnings (EBITDA) were broadly in-line with expectations though tax was slightly higher-than-expected, resulting in a minor miss versus the broker and consensus.

Macquarie maintains its Outperform rating and $185 price target, as the outlook remains solid, with depth penetration seeing a healthy jump in the second half.

Sector: Media.

Target price is $185.00.Current Price is $155.19. Difference: $29.81 - (brackets indicate current price is over target). If REA meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena