Stephens still bullish on eXp World Holdings despite mixed quarter
Stephens analyst John Campbell lowered eXp World Holdings price target to $19 from $21 on lower profit estimates, while reiterating an Overweight rating on the shares. The analyst continues to like the stock long despite a mixed quarter that gave him plenty of support for his long thesis around disruptive growth but also came with a step back in leverage versus last quarter. The analyst thinks investors should remain focused on the bigger picture and the "bright" outlook ahead, including an agent TAM penetration of only about 70bps, nice leverage optionality tied to bolt-on ancillary services and the lingering potential of a takeout. Campbell believes that eXp World Holdings has been weighed down by broader housing/macro concerns, but thinks the word "cyclicality" is not quite part of its story yet.