Compass added to Conviction List, price target raised to $5.50 at Needham

Needham analyst Bernie McTernan raised the firm’s price target on Compass (COMP) to $5.50 from $4.50 and keeps a Buy rating on the shares. The firm also adds the stock to its Conviction List and removes Genius Sports (GENI) as part of a broader research note on Internet Services. Needham’s deep dive of the impact of generative AI and other automation technology on the US real estate brokerage marketplace has given the firm increased confidence that investments in this technology can make agents more efficient, accelerating the share shift that has been occurring in the industry to economic models where agents can earn more, the analyst tells investors in a research note. Compass looks best positioned to benefit from this trend over the next few years, Needham added.