eXp World has more risk than peers to potential industry lawsuits, says BTIG

BTIG notes that eXp World Holdings disclosed this morning that CFO Jeff Whiteside is resigning to pursue other opportunities and that CAO Kent Cheng will take on Whiteside’s responsibilities while the company conducts an external search for a CFO. In the same 8-K, eXp disclosed a new lawsuit against it and a few other defendants, including Compass (COMP) that the firm says “sounds like a similar lawsuit to the Sitzer/Burnett case.” In general, the CFO of a company resigning ahead of what could be a significant shift in the business model is “not a positive sign,” says the analyst, who thinks eXp has more risk than peers to potential industry lawsuits given its agent count-focused business model and lower-producing agents. BTIG has a Sell rating and $11 price target on eXp World Holdings shares.