Update shared on23 Sep 2025
Fair value Increased 2.00%Analysts have raised Compass's price target to $9.33, citing the anticipated value creation and cost synergies from its pending acquisition of Anywhere Real Estate, despite near-term leverage and regulatory risks.
Analyst Commentary
- Bullish analysts have updated price targets to account for Compass's pending acquisition of Anywhere Real Estate, factoring in anticipated deal closure and associated structural changes.
- The deal positions Compass as an industry leader, with 320,000 agents, a 15% share of national transaction sides, and pro forma 2025 revenue of $12.8B.
- The combined entity is expected to achieve significant cost synergies, estimated at $225 million (about 8% of combined pro forma OpEx), supporting margin expansion.
- Although the transaction leaves the company initially highly leveraged (pro forma net debt-to-EBITDA of 4.4x), analysts project a reduction to around 1.5x by 2028 through deleveraging efforts.
- Regulatory and antitrust scrutiny remains a key risk to completion of the deal and is reflected in conservative price target adjustments.
What's in the News
- CFO Kalani Reelitz to resign, with Chief Accounting Officer Scott Wahlers appointed as CFO and principal accounting officer, leveraging extensive finance and operational experience including key roles in Compass's IPO and restructuring programs.
- Compass issued Q3 revenue guidance between $1.725 billion and $1.850 billion.
- Compass formed a new alliance with Chapter to provide integrated, technology-driven renovation and remodeling solutions for clients in major markets, enhancing agent offerings and client value through complimentary consultations, renderings, and project management.
Valuation Changes
Summary of Valuation Changes for Compass
- The Consensus Analyst Price Target has risen slightly from $9.15 to $9.33.
- The Future P/E for Compass has risen slightly from 24.37x to 25.07x.
- The Discount Rate for Compass remained effectively unchanged, moving only marginally from 8.60% to 8.72%.
Disclaimer
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