Fairfax - Limited downside from here
![](https://assets.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBdlVEIiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--fe8e95f79a11b9bf36337481d9b1df3ca7098c02/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJY0c1bkJqb0dSVlE2RTNKbGMybDZaVjkwYjE5bWFXeHNXd2RwQWNocEFjZz0iLCJleHAiOm51bGwsInB1ciI6InZhcmlhdGlvbiJ9fQ==--c306068f01ab83c3650795f1865f4e6da1f93433/96853c0e2dd18a1ef79b19f485d602901404095827.png)
Stockbroker
FXJ’s share price is trading at the bottom-end of our valuation and we see limited downside at these levels. With the recent planned demerger of Domain, FXJ’s share price has broken outside its core trading range of $0.80-$0.95. On a sum of the parts basis, we value FXJ at $1.40 per share. The current share price of $0.95 appears well under-pinned & fails to reflect any additional wins in its transition to a new world organization.
"At these levels, FXJ is a likely acquisition candidate"
We value total Domain operations at $2.4 billion. Whilst property listings have been weak for the last 12 months, we are anticipating an improvement in the near-to-medium term. With price increases, increasing premium listings penetration & possibly improving national footprint, all bodes well for upgrades to Domain’s earnings down-the-track.
One day print advertising will stabilize. We await the day there is a moderation in the decline of print advertising (to c.1-2%), but it is not likely in the next 6 (or 12 mths).
2 topics
![Foster Stockbroking](https://assets.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBdlVEIiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--fe8e95f79a11b9bf36337481d9b1df3ca7098c02/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJY0c1bkJqb0dSVlE2RTNKbGMybDZaVjkwYjE5bWFXeHNXd2RwQWNocEFjZz0iLCJleHAiOm51bGwsInB1ciI6InZhcmlhdGlvbiJ9fQ==--c306068f01ab83c3650795f1865f4e6da1f93433/96853c0e2dd18a1ef79b19f485d602901404095827.png)
Providing investment strategies, research and ideas to institutional and professional investors since 1991, with a primary focus on emerging Australian companies.
Expertise
![Foster Stockbroking](https://assets.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBdlVEIiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--fe8e95f79a11b9bf36337481d9b1df3ca7098c02/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJY0c1bkJqb0dSVlE2RTNKbGMybDZaVjkwYjE5bWFXeHNXd2RwQWNocEFjZz0iLCJleHAiOm51bGwsInB1ciI6InZhcmlhdGlvbiJ9fQ==--c306068f01ab83c3650795f1865f4e6da1f93433/96853c0e2dd18a1ef79b19f485d602901404095827.png)
Providing investment strategies, research and ideas to institutional and professional investors since 1991, with a primary focus on emerging Australian companies.