JonesResearch downgrades Re/Max on agent growth pressure

JonesResearch analyst Jason Stewart downgraded Re/Max Holdings to Hold from Buy without a price target following the Q4 report. The analyst cites a less attractive environment for domestic agent recruitment amid a “higher-for-longer” rate backdrop for the downgrade. The firm expects Re/Max’s agent growth will likely to remain under pressure given only a modest recovery in home sales volumes in the U.S. As North American agents produce on average, 4-15 times the revenue contribution of those in the faster-growing international segment, the company’s overall results are likely to lag the timing of a faster recovery, contends JonesResearch. The firm looks for a more attractive valuation and improved stability in domestic agent retention and franchise sales growth for an entry point into the stock.