Compass (COMP – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Bernie McTernan from Needham reiterated a Buy rating on the stock and has a $11.00 price target.
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Bernie McTernan has given his Buy rating due to a combination of factors despite adjusting the price target for Compass’s stock. The adjustment comes after the first-quarter results and a revised macroeconomic forecast that anticipates a stagnant housing market in 2025, as opposed to the previously expected 5% growth.
Nevertheless, McTernan remains optimistic about Compass’s potential for over 20% revenue growth, driven by mergers and acquisitions and continued market share gains. He highlights the company’s focus on its three-phase marketing strategy, which appears to be effective given the strong organic growth in agent numbers. Despite the lowered estimates, McTernan sees a favorable risk-reward scenario, as Compass is achieving significant operating leverage even before any anticipated recovery in the housing market, which is expected to resume growth after a four-year pause in 2025.
McTernan covers the Consumer Cyclical sector, focusing on stocks such as DraftKings, thredUP, and eBay. According to TipRanks, McTernan has an average return of 3.3% and a 48.62% success rate on recommended stocks.