Barclays analyst Matthew Bouley has revised his price target for Compass (COMP, Financial), now setting it at $8, down from the previous $9. Despite maintaining an Equal Weight rating on the stock, Bouley highlights that Compass's first-quarter EBITDA aligned with expectations, notwithstanding some market fluctuations during the period. However, the analyst notes that the midpoint of the company's second-quarter outlook is under the projections anticipated by the market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Compass Inc (COMP, Financial) is $9.94 with a high estimate of $13.00 and a low estimate of $8.00. The average target implies an upside of 28.65% from the current price of $7.73. More detailed estimate data can be found on the Compass Inc (COMP) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Compass Inc's (COMP, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Compass Inc (COMP, Financial) in one year is $4.53, suggesting a downside of 41.4% from the current price of $7.73. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Compass Inc (COMP) Summary page.
COMP Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Compass Inc (COMP, Financial) reported a 28.7% year-over-year increase in revenue for Q1 2025.
- The company achieved record adjusted EBITDA of $16 million, a significant improvement from a negative $20 million in the previous year.
- Compass Inc (COMP) successfully recruited 700 gross principal agents organically, marking a 35% year-over-year increase.
- The company reported a strong agent retention rate of 96.6% in Q1 2025.
- Compass Inc (COMP) generated positive free cash flow for another quarter, highlighting effective cash management.
Negative Points
- Despite strong year-over-year growth, revenue was near the low end of guidance due to market uncertainty in March.
- The company experienced some slowdown in revenue growth in the latter half of March, attributed to market volatility.
- Compass Inc (COMP) faces challenges from MLS and portal policies that may discourage off-MLS marketing options.
- The company anticipates a negative impact on free cash flow in Q2 due to a $29 million class action settlement payment.
- Stock-based compensation expenses are expected to increase significantly in Q2, impacting financial results.
