Compass upgraded to Buy from Neutral at UBS

UBS upgraded Compass (COMP) to Buy from Neutral with a price target of $11, up from $7. The shares are not pricing in the benefits of the recently-closed Christie’s acquisition or Compass’s ability to drive organic market share gains, the analyst tells investors in a research note. The firm says the company’s execution track record on organic growth and cost containment remains underappreciated at current share levels. UBS sees “asymmetric upside” from a potentially favorable Clear Cooperation Policy decision, accelerated home purchase activity in Los Angeles post wildfires, upside to the $30M of acquisition related cost savings over the next three years, and the potential for existing home sales trends to accelerate in the second half of 2025.