The REA Group Ltd (ASX: REA) share price was on form on Thursday.
After a poor start, the $33 billion ASX 200 stock rebounded and reached a new record high of $260.40 before easing back to finish the session at $254.90.
The catalyst for this was the release of another strong half year result from the property listings company.
This latest gain means the realestate.com.au owner's shares are now up over 38% since this time last year.
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Is it too late to buy this ASX 200 stock?
The good news is that a couple of leading brokers believe that REA Group shares can keep rising from current levels.
One of those is Goldman Sachs, which thought that the company delivered a "strong" result. Commenting on the half, the broker said:
Delivered a strong 1H25 result, with good growth across a range of segments. The key surprise was the announcement that CEO Owen Wilson would retire in 2H25. Although introducing some uncertainty, we remain highly confident that the business is well-placed to continue delivering strong growth going forward (noting he may remain involved in a non-executive capacity).
In response, the broker has reaffirmed its buy rating and lifted its price target on the company's shares to $273.00. Based on its current share price, this implies potential upside of 7.1% for investors over the next 12 months.
The broker then adds:
We believe REA is among the highest-quality names in our coverage, given it has the highest ability to continue to drive pricing, with: (1) significant disparity between lead share and revenue share; (2) the lowest cost relative to overall vertical transaction; (3) a profitable and still fragmented end market; and (4) the existence of Vendor Paid advertising, with strong valuation support with current trading multiples in-line with historical levels.
What else is being said?
Over at Bell Potter, its analysts have responded positively to the ASX 200 stock's half year results.
They have retained their buy rating and lifted their price target to $281.00 (from $258.00). This suggests that upside of 10.2% is possible over the next 12 months.
Commenting on its buy recommendation, Bell Potter said:
We cautiously maintain our Buy rec. flagging potential volatility in the near term. Our TP is increased on rolling fwd our model to 100% FY26. REA's strong cash flow profile allows for sustained platform reinvestment to target double-digit yield growth through the cycle, including a next-gen listing platform to drive CX and higher quality leads to vendors.
