Morgan Stanley Downgraded RE/MAX Stock, Price Target Slashed By Over 50% — NAR Ruling Key Risk
Portfolio Pulse from Surbhi Jain
Morgan Stanley has downgraded RE/MAX Holdings Inc's stock to underweight and slashed its price target by over 50% due to the NAR ruling, which increases the risk of further litigation and costly settlements. The bank also identified five risks that could weigh down the stock's multiple, including earnings risk, limited ability to return capital to shareholders, and management transition at a time of ongoing litigation.
November 07, 2023 | 4:57 pm
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NEGATIVE IMPACT
RE/MAX's stock has been downgraded by Morgan Stanley due to the NAR ruling and other risks, which could negatively impact its stock price.
The downgrade by Morgan Stanley, a major investment bank, coupled with the identified risks, could lead to a decrease in investor confidence and a drop in RE/MAX's stock price.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEUTRAL IMPACT
Morgan Stanley's downgrade of RE/MAX could impact its own stock as it reflects the bank's view on the real estate market.
As an investment bank, Morgan Stanley's stock can be influenced by its market views and actions. However, this specific action is more likely to impact RE/MAX's stock than Morgan Stanley's.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50