URGENT UPDATE: Brokers have just recommended two high-quality ASX 200 shares poised for significant growth. According to a recent report from UBS, both REA Group Ltd (ASX: REA) and TechnologyOne Ltd (ASX: TNE) are rated as “buys” due to their competitive advantages and strong financial outlooks.
REA Group, known for its flagship website realestate.com.au, has been highlighted for its robust performance, exhibiting a staggering 15% revenue growth and a remarkable 23% net profit after tax (NPAT) growth for the financial year 2025. UBS has set a price target of $290 for REA, underscoring the company’s market leadership with a 55% increase in seller leads and quadrupled audience visits compared to competitors.
The company’s financial guidance for FY26 indicates promising double-digit yield growth, driven by a projected 7% price rise. As REA prepares for increased competition from CoStar, which recently acquired Domain, the broker notes that AI-driven efficiencies will mitigate rising marketing costs.
Meanwhile, TechnologyOne is making waves in the enterprise software sector. The company has a buy rating from UBS, with a price target of $42.20. Its net revenue retention (NRR) target of 115% indicates a projected annual revenue increase, thanks to successful upselling strategies and low customer churn.
UBS is optimistic about TechnologyOne achieving a 35% profit before tax (PBT) margin by FY28, a milestone supported by strong growth and ongoing investment in research and development. The broker anticipates that the company’s innovative product roll-outs will maintain its upward trajectory in the competitive software market.
Both companies are set to benefit from favorable market conditions and strategic initiatives. Investors are urged to consider these recommendations as they look for opportunities in the ASX 200.
As financial markets continue to evolve, these insights from UBS provide timely guidance for investors seeking to capitalize on high-quality stocks.
Stay tuned for more updates on these developments as they unfold.
