Compass price target lowered to $12 from $13 at Goldman Sachs

Goldman Sachs lowered the firm’s price target on Compass (COMP) to $12 from $13 and keeps a Neutral rating on the shares after the company announced entered into an agreement to acquire a 51% ownership stake in Peerage, Sotheby’s largest franchisee, for an undisclosed price. Financial details are limited, but the firm views this as strategically positive for Compass, which is further consolidating the industry that is near the bottom of the US housing cycle. Goldman adds however that its reduced price target reflects the recent multiple compression in peer comps following rising uncertainty in the US housing outlook.