Compass (COMP) Stock Forecast & Price Target

Compass Inc. is expected to achieve approximately 20% agent growth through 2025, driven by the effectiveness of its leading brand and integrated tech platform, which continues to enhance agent acquisition efforts. The company's strategic investments have established a robust flywheel effect that supports ongoing agent growth, regardless of changes to new agent incentives. Additionally, the anticipated closure of the HOUS transaction is projected to significantly increase Compass’s market share from approximately 6% to 18%, bolstering its position both locally and nationally.

The downward pressure on the housing market is anticipated to adversely affect Compass Inc.'s revenue, leading to weakened financial performance metrics. Additionally, projections indicate that EBITDA profitability margins may only reach low to mid-single digits by 2025, reflecting ongoing operational challenges. Furthermore, prolonged elevated mortgage rates are expected to hinder top-line growth and limit the company's operating leverage, compounding the fundamental issues facing its financial outlook.