Morgan Stanley analyst Richard Hill downgraded $RE/MAX Holdings (RMAX.US)$ from Equal-Weight to Underweight and lowered the price target from $19.5 to $9. The real estate firm posted quarterly earnings on Friday, November 3rd, announcing a fifth quarter of revenue decline alongside lawsuit settlements over the firm's sales commission structure.
In a Morgan Stanley note, an analyst said it sees too many negative catalysts for the real estate company.
“The company expects to announce a new CEO in the next couple of weeks. This expected management transition comes at a time of elevated litigation and macro headwinds to the business, which increases execution risk. We expect investors to take a wait-and-see approach on the new management and remain on the sidelines.”