Compass Inc. (COMP) PT Raised to $11 at BTIG

BTIG analyst Jake Fuller raised the price target on Compass Inc. (NYSE: COMP) to $11.00 (from $9.00) while maintaining a Buy rating.

The analyst comments "Resi real estate stocks gapped up post the Powell speech last week with the market looking towards a Sept. rate cut. COMP broke through our initial 12-month PT of $9, and we revisit our thesis as a result. We maintain a Buy and take our PT to $11. Why? 1. With market share up & costs down over the past several years, COMP should be HIGHLY leveraged to a housing recovery if we in fact see a sustained downtick in the 30-yr fixed, 2. We pencil out to "recovered" EBITDA potential for COMP of $700-900M (2025e $243M) based on current transaction share, 100-200 quarterly organic agent net adds & LSD growth in OpEx w/'29 as our assumed fully-recovered year (i.e. EHS ~5.5M), 3. Meanwhile, our reverse DCF suggests that at the current price COMP is discounting a 5-yr housing recovery timeline which we see as reasonable."

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