REA Group (ASX:REA) delivered a "solid" fiscal 2026 result with earnings before interest, taxes, depreciation, and amortization beating consensus estimates on cost and capital-allocation discipline, Jarden said in a Friday note.
The company guided for a low double-digit controllable buy yield in fiscal 2027 after posting 13% growth in fiscal 2026.
Jarden remains constructive on the buy yield going forward, but noted that fiscal 2027 listings guidance points to flat to down in the low single-digit range, with some July softness concentrated in the higher-yielding Sydney and Melbourne markets.
The equity research firm made small changes to its near-term adjusted EPS estimates for REA Group, with the fiscal 2027 estimate rising 1%, fiscal 2028 forecast up 2%, and increases of roughly 3% to estimates for fiscal 2030 to fiscal 2033.
"We continue to see REA executing on controlling the controllables, with the fiscal 2026 result reinforcing the flex it has in its cost base heading into fiscal 2027," Jarden said.
It maintained a neutral rating on REA Group while raising the target price to AU$183 from AU$178.
The company's shares gained 1% in recent Friday trade.