On May 29, DA Davidson upgraded eXp World Holdings, Inc. (NASDAQ:EXPI)’s stock to “Buy” from “Neutral,” increasing the price objective to $10.75 from $10, as reported by The Fly. This upgrade comes off the back of favourable indicators in the company’s US agent count, which witnessed growth over the past few weeks.
An aerial view of the largest real estate development in the city, symbolizing the company’s success.
This momentum stems from eXp World Holdings, Inc.’s successful strategies in bringing high-volume teams, which can mitigate the bearish perspective towards the company.
Furthermore, eXp World Holdings, Inc.’s international business continues to benefit from more favorable commission splits and higher caps as compared to its US brokerage, leading to increased gross margins. The firm’s analysts believe that the international revenue mix is expected to contribute to an improvement in eXp World Holdings, Inc.’s consolidated gross margins over the upcoming years.
Also, DA Davidson highlighted the industry’s gradual transition towards cloud and virtual brokerages, such as eXp World Holdings, Inc.. The company’s emphasis on operational expenditure efficiency, which includes AI usage, was tagged as a key area for potential improvement.
In Q1 2025, the company managed to more than double its international revenue YoY and expand its footprint into Perú and Türkiye, which suggests that its agent-first model transcends borders.
eXp World Holdings, Inc. offers cloud-based real estate brokerage services for residential homeowners and homebuyers.
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