William Blair analyst Stephen Sheldon has maintained their neutral stance on RMAX stock, giving a Hold rating today.
Stephen Sheldon has given his Hold rating due to a combination of factors influencing Re/Max Holdings’ current performance and future outlook. The company’s first-quarter results slightly exceeded expectations, with a modest increase in total agents year-over-year. However, the sequential decline in agent count, particularly in the U.S., raises concerns about competitive pressures and market challenges. The revenue, excluding marketing funds, showed a slight decline, although it was better than anticipated, and adjusted EBITDA was above estimates, indicating some financial resilience.
Despite these positives, the U.S. agent count has significantly decreased, driven by competitive and market pressures, which poses a challenge for sustained growth. Management remains hopeful about stabilizing U.S. agent growth through new initiatives like RE/MAX Teams and the Aspire solution, which aims to enhance training and retention. While there are signs of improvement, such as the best April for agent recruiting since 2022, the overall uncertainty in the market and the need for further stabilization contribute to the Hold rating, as the company navigates these transitional dynamics.
According to TipRanks, Sheldon is a 2-star analyst with an average return of -1.3% and a 42.86% success rate. Sheldon covers the Technology sector, focusing on stocks such as Udemy Inc, Olo, and Par Technology.
In another report released today, KBW also reiterated a Hold rating on the stock with a $9.00 price target.