REA Group Ltd (ASX: REA) shares have had a rough 12 months, with the stock now trading well below the levels seen late last year.
The REA share price is down another 3.06% to $164.59 today, extending its 2026 decline to around 10%.
It's also a long way from the 52-week high of $242.81. From that level, the stock has fallen by around 32%, despite a strong bounce from its June low of $131.07.
That recovery carried REA shares back above $180 in August, but some of those gains have since been given back.
With the valuation lower and brokers still seeing upside, investors may be wondering whether REA shares now look attractive again.
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Citi becomes more cautious
One broker that isn't getting too excited about the lower share price is Citi.
According to The Australian, analyst Siraj Ahmed has downgraded REA shares to neutral after their recent rebound, although he lifted his price target by 4% to $191.30.
That still sits around 16% above the current share price.
Citi's concern is that some of the value that appeared after the June sell-off has already disappeared. REA shares rallied more than 30% from their low, pushing the valuation higher again.
The broker is also worried about property listings, particularly with interest rates still a risk.
REA expects national buy listings to be flat to down by a low single-digit percentage in FY27. Citi is more bearish and is forecasting a decline of around 5%.
And with the stock trading at 30 times forecast earnings, Citi thinks there's less room for things to go wrong if listings keep falling.
What are other brokers saying?
The wider broker view on REA shares is still fairly mixed.
According to TipRanks, 10 recent analyst ratings give the stock an average 12-month price target of $191.32.
That suggests potential upside of around 16% from the current share price.
The consensus includes 4 buy ratings, 5 holds, and 1 sell.
Morgan Stanley is the most bullish with a $230 target, while Ord Minnett is close behind at $225.
Morgans has a $203 target, RBC Capital sits at $197, and Jefferies is at $195.
UBS is more reserved with a $177 target, while Macquarie is only slightly above the current share price at $170.
However, Bell Potter is the most bearish of the group, with a sell rating and $147 price target.
Are REA shares cheap yet?
REA shares are certainly a lot cheaper than they were, but that doesn't automatically make them a bargain.
The business is still growing. FY26 core net profit rose 15% to $650.5 million, while the full-year dividend increased 20% to $2.97 per share.
But the broker targets show there is still plenty of debate over what investors should be willing to pay.
A lot will depend on whether REA can keep lifting revenue and margins if property listings weaken further.
