Compass-Anywhere Merger: Cost Synergies, Earnings Upside, and Multiple Expansion Make Compass the Sector Top Pick

Analyst Bernie McTernan of Needham reiterated a Buy rating on Compass, retaining the price target of $17.00.

Bernie McTernan has given his Buy rating due to a combination of factors, including his view that the combined Compass and Anywhere Real Estate platform can deliver meaningful cost synergies and above-market earnings growth. He expects the integration to support steady mid‑single‑digit revenue expansion through 2028, which in turn underpins a much faster increase in adjusted EBITDA.

McTernan also sees room for Compass to outperform his current revenue forecast as its expanded inventory strategy attracts more agents, boosts productivity at the acquired HOUS network, and benefits from a normalization of the U.S. housing cycle toward mid‑cycle levels. In his view, Compass offers both upside to consensus estimates and the potential for the market to award a higher valuation multiple, making it his top pick in the sector.

In another report released on March 9, J.P. Morgan also maintained a Buy rating on the stock with a $14.00 price target.