Macquarie Bank has downgraded Domain Holdings (ASX:DHG), a renowned Australian property listing firm, from ‘neutral’ to ‘underperform’.

This noteworthy shift is primarily due to a softening growth outlook and rising operational expense.

Furthermore, Macquarie has revised its price target for the firm, lowering it from A$4.00 to A$2.80.

The company had recently reported a substantial decrease of 20.6% in EBITDA for the fiscal year, failing to hit estimates.

Consequently, the brokerage has adjusted its forecasts, factoring in the lower earnings, elevated operational costs, and overall demanding market conditions.

It has slashed the EPS predictions by 19% to 28% for the fiscal years 2024 through 2027, and has reduced its NPAT expectations for FY24 by 28% to A$44.3 million and by 21% to A$61.0 million for FY25.

In a survey of 21 analysts, only one recommends ‘buy’, eight advise ‘hold’, and two suggest ‘sell’ or lower, with a median price target of A$3.60.

As of today, Domain Holdings (ASX:DHG) shares are trading 1.1% lower at A$3.57.

Still, the company’s stock is up 33.2% this year.

Despite the recent downward revision, it exhibits a strong performance trajectory.

Domain Holdings (ASX:DHG) is a recognized property listing company in Australia, facilitating a platform for residential and commercial property transactions.