REA Group Ltd (ASX: REA) shares have fallen out of favour after several strong years on the ASX. The share price is now down around 20% over the past 12 months and almost 5% in the last month alone.
That pullback has raised fresh questions about whether a rebound could be on the cards in 2026.
Here's what's driving the share price lower, what brokers are saying, and whether this blue-chip could rebound.
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What's driving the weakness?
REA Group shares were much higher in early 2025, supported by strong profits and its dominant position in online property listings.
Since then, the share price has fallen as investors shifted away from technology and growth stocks. In 2025, the ASX tech sector lagged the broader market, even as the overall share market posted modest gains.
A steady flow of company news has also weighed on sentiment. Management changes, regulatory filings and recent share price moves have added to investor uncertainty.
While REA's core Australian business continues to perform well, some overseas operations have been weaker. In India, for example, revenue fell in the first quarter, raising questions about growth outside Australia.
Earnings still showing strength
Even though the share price has fallen, REA's latest results show the business continues to grow.
In the first quarter of FY26, revenue rose by about 4% compared with last year, while profits increased by roughly 5%, supported by steady demand in REA's key markets.
The company also said usage of realestate.com.au remains strong, with high levels of customer engagement. REA continues to invest in technology to defend its leading position in online property listings, even as growth moderates.
What brokers think
Brokers do not all agree on REA Group, but most still see upside from current share price levels.
Macquarie has a neutral rating and a price target of $220. This suggests the broker sees some upside, but expects a more gradual recovery.
Other brokers are more optimistic. UBS has a price target of $255, Bell Potter sits at $244, and Jefferies has a target of $225. While some targets have been trimmed recently, they still sit above last week's closing share price of $184.78.
Overall, the average broker price target is closer to $240. That implies potential upside of roughly 30% over the next 12 months if the company meets expectations.
So, is a rebound likely?
A rebound is not certain, but there are signs that the worst of the sell-off may be over.
REA remains profitable, broker targets sit above current levels, and sentiment could improve if interest rate cuts support growth stocks.
REA is not a short-term trade, but 2026 could appeal to long-term investors comfortable with volatility.
