Anywhere Real Estate stock holds steady as KBW reaffirms rating

Keefe, Bruyette & Woods maintained its Market Perform rating and $4.50 price target on Anywhere Real Estate Inc. (NYSE:HOUS) Wednesday despite lowering quarterly estimates. The research firm trimmed its second-quarter adjusted EBITDA estimates to $132 million from $145 million following the company’s reduced guidance.

Anywhere Real Estate reduced its second-quarter 2025 adjusted EBITDA guidance range to $125-135 million, representing a 9% decrease at the midpoint from its previous guidance. The company had initially projected results similar to second-quarter 2024, which delivered $143 million in adjusted EBITDA.

The real estate services provider attributed the guidance reduction to softer home-sale transaction volumes in the current quarter. Despite the near-term adjustment, Anywhere Real Estate maintained its full-year 2025 adjusted EBITDA guidance of approximately $350 million. The company’s last twelve months EBITDA stands at $274 million, though InvestingPro data indicates some financial challenges with a current ratio of 0.41.

The company expects an improved housing market in the second half of 2025 and anticipates benefits from the timing of its cost-saving initiatives. These factors support management’s decision to maintain the full-year outlook despite the second-quarter reduction.

KBW also adjusted its longer-term projections for Anywhere Real Estate, reducing its adjusted EBITDA estimates for 2025, 2026, and 2027 to $340 million, $396 million, and $435 million, respectively. The firm’s $4.50 price target represents 7.5 times enterprise value to adjusted EBITDA based on 2026 estimates. With a market capitalization of $416 million and a beta of 1.75, the stock shows significant volatility. Discover more detailed insights and 10+ additional ProTips with a InvestingPro subscription.

In other recent news, Anywhere Real Estate Inc. reported its financial results for the first quarter of 2025, revealing a significant earnings per share (EPS) miss, with a reported EPS of -$0.70 compared to the forecasted -$0.56. However, the company slightly exceeded revenue expectations, posting $1.2 billion, which marked a 7% increase year-over-year. Meanwhile, Moody’s has affirmed Anywhere Real Estate’s corporate family rating at B3, though the agency downgraded its backed senior secured second lien notes and senior unsecured notes, reflecting concerns over increased debt levels. The company also announced a proposed $500 million notes offering, intending to use the proceeds to repurchase existing notes and repay a portion of its revolving credit facility. Additionally, a Bloomberg report suggested that Anywhere Real Estate made a merger proposal to Douglas Elliman Inc., potentially valuing the company at double its current stock price. Despite the earnings miss, Anywhere Real Estate’s strategic initiatives and investments in AI and technology continue to drive operational efficiency and innovation. The company’s financial performance remains closely tied to the housing market, with expectations of gradual improvement in debt leverage ratios over the next 12-18 months.

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