Compass’s Growth Strategy and Market Consolidation Drive Buy Rating

In a report released today, Bernie McTernan from Needham maintained a Buy rating on Compass (COMP – Research Report), with a price target of $12.00.

Bernie McTernan has given his Buy rating due to a combination of factors that highlight Compass’s potential for growth. One of the primary reasons is the company’s strategy to significantly increase its market share in its top 30 markets, aiming for a 30% share as early as next year. This growth is expected to be driven by both mergers and acquisitions as well as organic expansion.
Additionally, the anticipated end of clear co-operation (CCP) is seen as a catalyst for market share consolidation within the industry. This change could pose a challenge for smaller brokerages, thereby providing Compass with a competitive edge. These factors collectively support the positive outlook and the Buy rating for Compass’s stock.