Domain Is Well Placed to Weather the COVID-19 Storm

We have maintained our fair value estimate for narrow-moat-rated Domain at AUD 3 per share despite significantly lowering our short-term earnings forecasts. However, at AUD 2.85, the current share price has already risen 70% from its late March lows and Domain now appears fairly valued. Importantly, we expect the company to survive the coronavirus-related downturn, aided by the AUD 80 million increase in debt facilities last week and waiver of debt covenants for the remainder of 2020. This should provide Domain with sufficient liquidity as the economy gradually reopens and the business recovers during the second half of 2020.