Vacasa downgraded to Perform at Oppenheimer on elevated churn issues

Oppenheimer analyst Jed Kelly downgraded Vacasa to Perform from Outperform without a price target. The firm cites elevated churn causing management to guide for declining 2023 revenue for the downgrade, the analyst tells investors in a research note. Churn was called out as an industry-wide dynamic from travel patterns normalizing back to International/Urban destinations, and equating to lower rental income for owners, causing them to explore other options, implying Vacasa’s scale advantages around national brand and revenue management are not translating into wins, the analyst tells investors in a research note.