U.S. stocks edge higher; solid earnings season continues
Investing.com - DA Davidson raised its price target on eXp World Holdings Inc (NASDAQ:EXPI) to $12.00 from $10.75 while maintaining a Buy rating on the stock. The real estate management company, with a market capitalization of $1.64 billion and annual revenue of $4.58 billion, has shown strong momentum with a 10% gain over the past week.
The research firm cited positive U.S. agent checks suggesting that the initial weeks of the third quarter have continued the "solid but admittedly still relatively modest upward trend" observed in eXp’s U.S. agent count over the last two months of the second quarter. According to InvestingPro, the company maintains strong financial health with more cash than debt on its balance sheet, one of 20+ key insights available for subscribers.
DA Davidson kept its estimates for the second quarter of 2025 unchanged, while modestly increasing its calendar year 2025 estimates by less than 1%.
The firm’s 2026 revenue and EBITDA forecasts were raised by 1% and 4%, respectively, based on the improving agent count trends.
The new $12 price target implies a 4.7x enterprise value to EBITDA multiple based on the firm’s 2026 forecasts for eXp World Holdings.
In other recent news, eXp World Holdings Inc. reported its first-quarter 2025 earnings, revealing a revenue of $954.9 million, which fell short of the anticipated $997 million. Despite the revenue miss, the company saw a 4% increase in real estate sales volume and a 6% improvement in its cash position year-over-year. Internationally, eXp World experienced a 103% surge in realty revenues year-over-year for the first quarter, benefiting from more favorable commission splits and higher caps compared to its U.S. operations. In a strategic move, eXp World gained preliminary court approval for a settlement related to a class-action lawsuit, pending final court approval. The company also announced the permanent appointment of Jesse Hill as Chief Financial Officer, a decision applauded by DA Davidson, which reiterated a Buy rating with a $10.75 price target. DA Davidson upgraded eXp World’s stock from Neutral to Buy, citing positive indicators in the company’s U.S. agent count and successful recruitment strategies. These developments reflect eXp World’s ongoing efforts to navigate a challenging real estate market while expanding its international presence.
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