DA Davidson Downgrades eXp World Holdings Inc (EXPI) to Neutral

DA Davidson analyst Tom White downgraded eXp World Holdings Inc (NASDAQ: EXPI) from Buy to Neutral with a price target of $15.00 (from $20.00).

The analyst comments "We are lowering our rating on shares of EXPI from Buy to NEUTRAL. We are reducing our 2024/2025 estimates and trimming our 12-month price target from $20 to $15 (implies 6.5x our 2024 EV/Gross Profit). Our checks suggest that EXPI's core U.S. agent count trends continue to be weak (a trend we see risk may persist during CY'24), which, combined with the relatively nascent/protracted ramp in EXPI's higher-margin ancillary revenue opportunities, creates a set-up where we expect EXPI will struggle to materially exceed consensus estimates over the next several quarters (even if we see a recovery in the broader housing market). Given EXPI's elevated valuation relative to its peers in the brokerage/residential prop-tech space, we now view the stock's 12-month upside potential as more limited vs. our prior view."

For an analyst ratings summary and ratings history on eXp World Holdings Inc click here. For more ratings news on eXp World Holdings Inc click here.

Shares of eXp World Holdings Inc closed at $13.45 yesterday.

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