U.S. stocks edge higher after weekly jobless claims; Salesforce gains
Investing.com - Keefe, Bruyette & Woods raised its price target on Anywhere Real Estate Inc. (NYSE:HOUS) to $11.00 from $4.50 on Tuesday, while maintaining a Market Perform rating on the stock.
The significant price target increase reflects KBW’s assessment that there is an 80% probability of the previously announced all-stock merger with Compass closing. The new target incorporates both the potential merger value (based on Compass market price multiplied by the 1.436 share conversion ratio) and a standalone valuation of $5 per share. According to InvestingPro data, HOUS is currently trading above its calculated Fair Value, with a market capitalization of $1.32 billion.
KBW indicated it was reducing forward estimates modestly following Anywhere’s third-quarter results, mainly due to slightly lower expected transaction volumes and corresponding margins. The firm noted that Anywhere management has suspended guidance in light of the proposed merger.
The research firm believes antitrust scrutiny risk for the merger is "reasonably low" because the combined entities’ nationwide market share is relatively modest, approaching 20% based on transaction volumes.
KBW did acknowledge that the combined market share in certain key metropolitan statistical areas is fairly high, "likely above 50% totaling owned brokerage and branded franchises in some coastal MSAs."
In other recent news, Anywhere Real Estate Inc. reported its third-quarter financial results, revealing an earnings per share (EPS) of -0.12, which significantly missed analyst expectations of 0.17. Despite this notable earnings miss, the company managed to exceed revenue forecasts, reporting 1.63 billion dollars compared to the anticipated 1.60 billion dollars. These developments highlight a mixed financial performance for the quarter, with revenue outpacing projections even as earnings fell short. The company’s stock showed resilience, rising in premarket trading. Investors and analysts are closely monitoring these recent developments for their implications on future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.