eXp World downgraded to Neutral from Buy at DA Davidson

DA Davidson analyst Tom White downgraded eXp World to Neutral from Buy with a price target of $15, down from $20. Channel checks suggest the company’s core U.S. agent count trends continue to be weak, which, when combined with the relatively nascent ramp in the higher-margin ancillary revenue opportunities, creates a setup where the company will struggle to materially exceed consensus estimates over the next several quarters even if we see a recovery in the broader housing market, the analyst tells investors in a research note. The firm cites eXp’s “elevated” valuation relative to its peers in the brokerage and residential prop-tech space for the downgrade.