Domain shares slide on a broker downgrade

By Chris Pash | 23 July 2019

Shares in Nine's majority-owned Domain dropped sharply after a broker downgrade of the property classified site.

At the close, the shares were down 6.2% to $2.87.

UBS, in a note to clients today, changed its recommendation for Domain to SELL from NEUTRAL on concerns about a fall in property listings. The investment bank has a price target of $2.75 a share for Domain.

Numbers from property analysts CoreLogic suggest Sydney new listings are down about 33% for the 4 weeks to 19 July, and Melbourne 34%. 

"We believe Domain has robust long-term growth prospects, but with near-term listings weak, ... we move to Sell," says UBS.

In February, Domain reported flat revenue for the half year as the pure-play online property classified business was hit by fewer listings and a move into programmatic advertising.

Underlying revenue was $183.9 million up just 0.3% for the six months to December and net profit after tax, ex significant items, down 14.2% to $21.1 million. With significant items, the loss was $156.4 million.

Domain is due to release its full year results 16 August.

 domain share price july 23 2019

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