Re/Max settlement should be positive for shares, says BTIG

BTIG analyst Soham Bhonsle keeps a Neutral rating on Re/Max Holdings after the company announced it has settled with plaintiffs in the Burnett and Moehrl antitrust cases. Re/Max expects to settle for $55M and has also “agreed to make certain changes to its business practices,” the analyst tells investors in a research note. While the settlement should be a positive for the stock, what’s more important going forward for the housing ecosystem are the changes that Re/Max and Anywhere Real Estate (HOUS) have agreed to, as this could have broader ramifications for unit economics and spend by real estate agents, contends the firm. It thinks giving the seller the ability to choose how much they want to compensate the buy-side agent is the most likely outcome of the lawsuits. BTIG says Re/Max shares “screen cheap at current levels,” but that its Neutral rating reflects U.S. agent count risk.