Compass sues CRMLS over MLS cooperation rules and marketing

Compass Inc. (NYSE:COMP) filed an antitrust lawsuit against California Regional Multiple Listing Service over rules requiring agents to submit home listings within one business day. Compass alleges the rules violate federal antitrust laws, suppressing its 'See It First' marketing strategy. CRMLS preemptively sued Compass in New York, arguing that withholding listings undermines market transparency.

Opendoor (OPEN), Zillow (ZG), and Compass (COMP) shares rose 6-7% as 10-year Treasury yields fell to 5.1%, improving housing affordability. Opendoor's Q2 revenue dropped 43.6% YoY to $883M, missing estimates, but its contribution margin expanded to 5.8%. Management expects Q3 revenue growth of at least 20% YoY and positive adjusted net income by year-end.

Compass Inc. (COMP) shares rose after Citizens JMP initiated coverage with a Market Outperform rating and a $11.00 price target. The company also added a Google Gemini veteran to its board to advance AI strategy. Despite strong revenue growth, risks include negative profitability, high debt, and brokerage margin pressure.

Compass (COMP) shares fell 4.6% after Wells Fargo cut its price target to $10, citing weak housing market conditions. The new target is 23% lower and implies 6.5% upside from the prior close. This is the lowest target among major brokerages, with consensus forecasts averaging above $15. The stock has lost 15.3% year-to-date and trades 34.5% below its 52-week high.

Goldman Sachs maintained a Neutral rating and $12.00 price target for Compass Inc. (NYSE:COMP), citing a deteriorating U.S. housing market. It lowered Q3 2026 EBITDA estimates to $281M and revenue to $3.89B. Compass shares are up 30% over six months but down 2.2% recently. The firm expects Compass to outperform due to its premium market focus and inventory strategy.

A federal judge denied Zillow's injunction against the Chicago MLS (MRED) and Compass, allowing private listing networks to operate. The ruling may enable MLSes to expand nationally with private networks, though Zillow argues these networks harm transparency and market access. The case is now in arbitration, with Congress also scrutinizing the practices.