Huge Opportunities With iProperty group expected to convert its...

Huge Opportunities
With iProperty group expected to convert its positive cashflow into a positive net profit result in a year or two, analysts are starting to question whether 19.9% shareholder REA Group, owner of realestate.com.au, will make a move for the small-cap dynamo!
Analysts at Credit Suisse estimate that iProperty group can grow revenue at 20% per annum over the next 8 years, which could easily see its market cap grow at the same rate as profit margins will improve with scale.
iProperty’s market cap today stands at $465 million, compared to $5.2 billion for REA Group. Growing at 20% per annum could see that market cap at over $2 billion by 2023! For reference, REA Group grew from a market cap of $484 million to $1.8 billion between 2006 and 2012- a period of 8 years!
The analysts at Morgans are equally bullish, pointing out that iProperty could be worth as much as $5.35 (more than double today’s $2.48) if some more aggressive assumptions are used on the path to profitability.
Takeover Potential?
While iProperty group has had exceptional success so far in establishing market-leading positions in Malaysia, Hong Kong, Thailand, and Indonesia, and the second spot in Singapore, most agree that REA Group will wait for more results before making a move.

http://www.********.au/2015/06/08/could-rea-group-limited-buy-iproperty-group-ltd-in-2015/