Update shared on 05 Nov 2025
Fair value Increased 3.92%The consensus price target for Anywhere Real Estate has increased from $8.50 to approximately $8.83, as analysts respond positively to the company’s pending acquisition by Compass. They also anticipate improved profitability and revenue growth.
Analyst Commentary
Recent upgrades and commentary from major investment firms reflect the shifting sentiment around Anywhere Real Estate following the announced acquisition by Compass. Analysts overall have become more constructive about the company's prospects, but also note several risks that could impact the combined entity going forward.
Bullish Takeaways- Bullish analysts have raised price targets substantially, citing the proposed acquisition as a valuation re-rating catalyst.
- The combined company is expected to become a clear industry leader, with approximately 320,000 agents and a 15 percent share of national sides. This is seen as supporting stronger revenue growth potential.
- Significant cost synergies are anticipated, with an estimated $225 million in operational expense reductions. This is expected to improve operating leverage and profitability.
- The transaction is projected to help diversify revenue streams, supporting more consistent long-term performance.
- Bearish analysts caution that the deal is subject to antitrust scrutiny, which could introduce regulatory hurdles and delays.
- Anywhere’s heavy debt load is a concern. While leverage is forecast to decline by 2028, near-term execution risk remains elevated.
- Valuation following the proposed deal assumes aggressive cost and revenue targets. Failure to achieve synergy estimates could pressure the combined entity’s financial metrics.
What's in the News
- FINRA has launched an early-stage probe into trading activity ahead of Anywhere Real Estate’s bid for Douglas Elliman, focusing on who was aware of the offer before it became public in late May (Reuters).
- Compass entered a definitive agreement to acquire Anywhere Real Estate for approximately $1.7 billion. Anywhere shares will be exchanged for Compass stock at an implied value of $13.01 per share. The deal is expected to close in the second half of 2026, pending shareholder and regulatory approvals (Key Developments).
- Upon closing of the acquisition, Compass CEO and Founder Robert Reffkin will lead the combined company. The entity will have an anticipated enterprise value of $10 billion, including debt (Key Developments).
- As of June 30, 2025, Anywhere Real Estate has completed the repurchase of over 8.7 million shares, totaling $96.96 million, under its previously announced share buyback program (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly, increasing from $8.50 to approximately $8.83 per share.
- Revenue Growth expectations have improved, from 7.04 percent to 8.22 percent projected growth.
- Net Profit Margin has increased, moving from 0.96 percent to 1.44 percent.
- The future P/E (price-to-earnings) ratio projection has fallen significantly from 20.20x to 13.28x, suggesting improved earnings expectations relative to price.
- Discount Rate remains unchanged at 12.32 percent.
Disclaimer
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