Goldman Sachs Downgrades Compass Earnings Estimates Amid Housing Market Weakness

Goldman Sachs has downgraded its third-quarter earnings estimates for Compass Inc. due to a deteriorating US housing market. The firm maintained a Neutral stock rating and $12.00 price target on the company, but lowered its forecast for third-quarter EBITDA to $281 million, below the Visible Alpha Consensus of $289 million.

Compass shares have delivered a 30% return over the past six months, despite recent volatility that resulted in a 2.2% decline over the past week. The stock currently trades at $10.13 and appears undervalued based on its Fair Value assessment, placing it among opportunities on the most undervalued stocks list.

Goldman Sachs attributed the weakness to affordability pressures, with the average 30-year fixed-rate mortgage rising to 6.95% as of September 17, 2026, according to Freddie Mac. The firm expects Compass to outperform the broader housing market due to its premium market focus and inventory strategy.

Compass reported strong financial results for the second quarter of 2026, surpassing Wall Street's expectations with earnings of $0.11 per share on revenue of $4.31 billion. The company recorded a record adjusted EBITDA of $363 million and generated free cash flow of $180 million.