Re/Max Holdings Coverage Initiated at Bank of America Corp. (RMAX)
Equities research analysts at Bank of America Corp. initiated coverage on shares of Re/Max Holdings (NASDAQ:RMAX) in a research note issued to investors on Monday, AnalystRatings.Net reports. The firm set a “buy” rating on the stock.
The analysts wrote, “Re/Max is the franchisor of 6,380 real estate brokerage offices. The ongoing US housing recovery, combined with Re/Max’s franchise model should yield strong operating leverage. We initiate with a Buy. We base our $33 price objective on 13x our 2015 recurring EBITDA estimate of $94mn. Our target multiple reflects Re/Max’s cyclically depressed EBITDA and franchise business model. Per-agent fixed fees drive the majority of Re/Max’s revenue and EBITDA. We forecast Re/Max’s agent count to increase 4.7% in 2013, 7.7% in 2014, and 5.7% in 2015. The company’s franchise business model should deliver strong incremental margins on revenue growth. We forecast a 62% incremental EBITDA margin (2012-2015E) compared to TTM adjusted EBITDA margin of 48.8%. These assumptions drive our forecast for adjusted EBITDA to grow at a 12% CAGR (2012-2015E).”
A number of other analysts have also recently weighed in on RMAX. Analysts at William Blair initiated coverage on shares of Re/Max Holdings in a research note to investors on Monday. They set an “outperform” rating on the stock. Separately, analysts at JPMorgan Chase & Co. initiated coverage on shares of Re/Max Holdings in a research note to investors on Monday. They set a “neutral” rating and a $30.00 price target on the stock. Finally, analysts at RBC Capital initiated coverage on shares of Re/Max Holdings in a research note to investors on Monday. They set an “outperform” rating and a $33.00 price target on the stock. Two research analysts have rated the stock with a hold rating and three have given a buy rating to the company. Re/Max Holdings presently has an average rating of “Buy” and a consensus target price of $31.50.
Shares of Re/Max Holdings (NASDAQ:RMAX) opened at 29.06 on Monday. The stock has a 50-day moving average of $0. and a 200-day moving average of $0.. The company’s market cap is $293.7 million.
Re/Max Holdings, Inc is a franchisor of real estate brokerage services. Its business is to recruit and retain agents and sell franchises.
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