REA Group's (ASX:REA) potential decline in listings appears manageable as the digital real estate company focuses on cost management and yields, helping offset uncertainty from Budget tax changes, Jefferies said in a note on Thursday.

The company posted strong fiscal 2026 results, with core profit coming in 1% above consensus expectations and underlying net profit after tax 3% above forecasts. The final dividend of AU$1.73 per share, up 25% year on year, was also a positive surprise.

Jefferies expects REA to deliver higher shareholder returns and has increased its payout ratio assumption to 62% from fiscal 2027 onwards, supported by strong free cash flow, a net cash balance, and a "significant" franking balance AU$1.1 billion.

The brokerage upgraded its EPS forecast by 5%, primarily due to improved cost control and the divestment of REA India.

Jefferies maintained its buy rating and raised price target to AU$195 from AU$180.