The REA Group Limited (ASX: REA) share price has been an exceptionally strong performer over the last 12 months.
Since this time last year, the property listings company's shares have almost doubled in value.
While some of this is due to the REA Group share price tumbling lower this time last year at the height of the pandemic, it is worth noting that it is still up 35% from its pre-COVID high.
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Can the REA Group share price still go higher?
A note out of Goldman Sachs this morning reveals that its analysts believe the company's shares can still go higher from here.
According to the note, the broker has retained its buy rating and lifted its price target to $179.00.
Based on the latest REA Group share price, this price target implies potential upside of 13.5% over the next 12 months.
What did the broker say?
Goldman Sachs made the move in response to REA Group's price increase plans that will take effect from July.
It commented: "Following the deferred 2020 increase, REA is increasing pricing +6-11% in 2021, and capping 2022 increases to +5-6%. Across the states, this comprises +8% increases in Inner Sydney, +7-9% Inner Melbourne and +6-11% in Tasmania. REA is also introducing 'Premiere Max' with pricing increasing +20%/+5% in year 1/2. All contracts include: (1) Length extended to 120 days (from 60); (2) Flex, which allows 20% of listings to pay marketing costs on sale (at a +20% premium), while Premiere Max has discounted access to Audience Maximiser (FB/website marketing) on all listings."
"These underlying price increases are broadly consistent with our prior estimate (GSe prior +11% yield growth in FY22, with +8% price), but with some potential upside risk if Premiere Max has a high level of take-up. We are also encouraged by the relative outperformance of REA, reinforcing our positive view," it added.
And while rival Domain Holdings Australia Ltd (ASX: DHG) is also making out of cycle price increases in July, it isn't enough for the broker to recommend it as a buy. Goldman has held firm with its neutral rating and lifted its price target to $5.05.
All in all, although the REA Group share price has been on fire over the last 12 months, it could still have further to run according to this leading broker.
