Why Macquarie expects Pexa shares to surge 29%

Macquarie forecasts some outsized gains from Pexa shares. But why?

| More on:
Happy woman standing in front of a house with a pen and clipboard.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Pexa Group Ltd shares have shown a strong performance in 2025, rising by 15.3% and surpassing the S&P/ASX 200 Index's 7.6% gains.
  • The company reported a 6% increase in transaction volumes for the September quarter, exceeding expectations and indicating positive growth prospects, particularly in the UK market.
  • Macquarie Group maintains an outperform rating for Pexa, forecasting significant market share gains and robust UK revenue growth.

PEXA Group Ltd (ASX: PXA) shares have raced ahead of the S&P/ASX 200 Index (ASX: XJO) in 2025.

Shares in the ASX 200 online property exchange network operator closed on Thursday trading for $14.86 apiece, down 1.6% for the day.

Still, that leaves the share price up 15.3% in 2025, or right around twice the 7.6% year to date gains delivered by the benchmark index.

And looking to the year ahead, the team at Macquarie Group Ltd (ASX: MQG) expect more material outperformance from Pexa shares.

Here's why.

Pexa shares tipped to outperform

Pexa announced its September quarter (Q1 FY 2026) results on Wednesday, 5 November.

Among the highlights, the company reported a 6% year-on-year increase in total transaction volumes processed through the PEXA Exchange to 1.06 million.

That beat both consensus expectations and Macquarie's own estimates. And it bodes well for the growth outlook for Pexa shares.

According to the broker:

Total market volume lifted +6% in 1Q26 vs pcp (incl transfers +3%, refinances +16%, other +1%) ahead of both 1H26E MRE (-4%) and cons (+1%). Total market share remained flat at 90% (vs 90% 2H25). We revise our total market volume growth to +2.8% in 1H26E

Pexa also reported that its United Kingdom remortgage completion volumes grew 32% at Optima Legal and 22% at Smoove compared to Q1 FY 2025.

Commenting on the UK businesses, Macquarie said:

Completion volumes were robust for Optima (+32% remortgages) and Smoove (+22% remortgages, +15% S&P), ahead of our 1H26E MRE revenue, resulting in our FY26E+ UK revenue lifting by ~1-2%. PXA reiterated plans to onboard NatWest volume in CY26, while also announcing conveyancing firm Muve has signed to use the PXA platform.

UK pricing was set, with our estimates suggesting S&P transactions will be pricing similarly in the UK vs Australia, while remortgages are priced at a significant premium. However, we expect strong price increases over the medium term (+6% vs Australia +2.5%), as the UK market better appreciates the PXA proposition.

Pleasingly, Pexa also reaffirmed full year FY 2026 guidance for revenue in the range of $405 million to $430 million.

Management is forecasting earnings before interest, taxes, depreciation and amortisation (EBITDA) margin of 32% to 35%, while the company expects to achieve FY 2026 net profit after tax (NPAT) between $5 million and $15 million.

Macquarie noted:

Group revenue of $405-430m (vs MRE $426m, VA cons $419m); Group Operating EBITDA margin 32-35% (vs MRE 32.0%, cons 33.3%); Group NPAT of $5-15m (vs MRE $13.7m, cons $11.4m), Group capex at $60-65m (vs MRE $60m, cons $62m).

Connecting the dots, Macquarie reiterated its outperform rating on Pexa shares.

"Any formal commitments from additional Tier 1 lenders are likely to incentivise the other four Tier 1 lenders to onboard with PXA quickly, driving rapid market share gains," the broker concluded.

Macquarie has a $19.10 12-month price target on Pexa shares. That represents a potential upside of 28.5% from Thursday's closing price.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and PEXA Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

A young man sits at his desk working on his laptop with a big smile on his face.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

busy trader on the phone in front of board depicting asx share price risers and fallers
Resources Shares

Brokers issue new price targets on soaring ASX 200 mining shares

ASX 200 mining shares BHP, PLS Group, South32, and many others hit multi-year highs this week.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Why Bell Potter just upgraded this smashing ASX 200 stock

After rising over 100% in 12 months, Bell Potter believes there is more to come.

Read more »

A man in his 30s with a clipped beard sits at his laptop on a desk with one finger to the side of his face and his chin resting on his thumb as he looks concerned while staring at his computer screen.
Broker Notes

Buy, hold, sell: Catalyst Metals, NRW, and Paladin Energy shares

Let's see what analysts are saying about these ASX 200 shares.

Read more »

Broker checking out the share price oh his smartphone and laptop.
Broker Notes

Morgans names 2 ASX shares to buy and 1 to hold

Which ones are buys and which one is a hold? Here's what you need to know.

Read more »

A man looking at his laptop and thinking.
Broker Notes

Buy, hold, sell: Morgans gives its verdict on 3 ASX shares

Here's what the broker is saying about these shares.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Broker Notes

Bell Potter says this beaten down ASX 200 stock is a buy

This blue chip could be worth looking at following recent weakness.

Read more »

Man presses green buy button and red sell button on a graph.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »