Analyst Jake Fuller of BTIG maintained a Buy rating on Compass, retaining the price target of $11.00.
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Jake Fuller has given his Buy rating due to a combination of factors surrounding Compass’s strategic acquisition plans and financial projections. The company plans to acquire Anywhere in an all-stock transaction, which is expected to significantly enhance its market position by creating an industry leader with approximately 320,000 agents and a 15% share of national market sides. This move is anticipated to generate substantial revenue growth, with pro forma revenue projected to reach $12.8 billion by 2025.
Moreover, the acquisition is expected to unlock significant cost synergies estimated at $225 million, which would enhance operational efficiency and profitability. Despite the increase in net debt to approximately $2.6 billion post-acquisition, the anticipated reduction in net debt-to-EBITDA ratio from 4.4x to 1.5x by 2028 suggests a strong financial outlook. These strategic and financial benefits underpin Jake Fuller’s confidence in Compass’s potential for growth, leading to the Buy rating.
According to TipRanks, Fuller is a 4-star analyst with an average return of 8.4% and a 55.29% success rate. Fuller covers the Consumer Cyclical sector, focusing on stocks such as Expedia, TripAdvisor, and DoorDash.