Citi Financial increased its price target on Australia’s REA Group (ASX:REA) following the company’s fiscal year 2023 results which exceeded market projections.

The new target was set at A$159.00 from A$157.50, while maintaining a neutral rating.

The company declared a core net profit after tax (NPAT) of A$372 million, a figure which was one percent above the Visible Alpha consensus of A$370 million.

Citi pointed out that while the FY23 result was slightly weaker considering the higher capitalized product spend, it anticipated solid growth in FY24 driven by a 13% price increase, continuous depth growth, and expected listing growth as the housing market recovers.

However, the firm lowered its FY24 NPAT forecast by 5% to account for higher cost growth, depreciation, and amortization and interest costs.

Out of 14 analysts, stock ratings were two ‘buy’, eight ‘hold’ and four ‘sell’, with the median price target at A$153.00 according to Refinitiv data.

The stock has risen by 43.2% this year, as of the last closing.

REA Group (ASX:REA) is an Australia-based digital advertising company that specializes in property.