Stephens says eXp World’s industry settlement should reduce legal overhang

Stephens notes that eXp World has issued an 8K informing investors that it had entered into a settlement agreement on October 1 in a host of home seller lawsuits, marking an end to one of the last major brokerage holdouts. Similar to other industry settlements, eXp World has agreed to a monetary settlement in addition to business practice changes. At first pass, the firm likes this development as it should reduce the legal overhang and allow the company to focus solely on operating the business. Another added benefit will be the lower legal expense moving forward, Stephens adds. The firm reiterates an Overweight rating on the shares with a price target of $16.