The consensus analyst price target for Anywhere Real Estate has risen sharply to $7.75, driven primarily by optimism surrounding the planned Compass takeover, anticipated synergies, and favorable deal terms for shareholders, despite regulatory risks.
Analyst Commentary
- Bullish analysts see the pending takeover by Compass as a favorable catalyst for Anywhere Real Estate, resulting in substantial target price increases.
- Both bullish and neutral analysts calibrate price targets to reflect regulatory and antitrust risks that could impact the merger’s completion.
- The all-stock deal is viewed as attractive for Anywhere shareholders due to strong implied valuation and expected value creation from the combination.
- The merged company is projected to become an industry leader, with a dominant national market share, enhanced scale, and significant cost synergies (estimated $225M, or about 8% of combined expenses).
- The resulting business is expected to diversify revenue streams, improve leverage ratios significantly over time, and deliver substantial pro forma revenue growth.
What's in the News
- Compass, Inc. entered into an agreement to acquire Anywhere Real Estate Inc. for $1.7 billion, exchanging each Anywhere share for 1.436 Compass shares, with an implied value of $13.01 per Anywhere share.
- Upon completion, Compass shareholders will own approximately 78% and Anywhere shareholders 22% of the combined company, which is expected to have an enterprise value of about $10 billion.
- Compass has secured $750 million in financing from Morgan Stanley Senior Funding, and the transaction is expected to close in the second half of 2026 pending shareholder and regulatory approvals.
- No repurchases were made between April 1 and June 30, 2025; the company has thus far repurchased a total of 8,761,432 shares (7.55%) for $96.96 million under its buyback program.
- Anywhere Real Estate announced a partnership with Canva to provide Canva Enterprise to its affiliated agents across all network brands, enhancing their suite of AI-powered business tools.
Valuation Changes
Summary of Valuation Changes for Anywhere Real Estate
- The Consensus Analyst Price Target has significantly risen from $4.00 to $7.75.
- The Future P/E for Anywhere Real Estate has significantly risen from 6.22x to 12.93x.
- The Net Profit Margin for Anywhere Real Estate has fallen from 1.45% to 1.37%.
Disclaimer
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