Credit Suisse Sees Multiple Challenges Ahead For Realogy Holdings

In a report published Thursday, Credit Suisse analyst Michael Dahl reiterated an Underperform rating and $37.00 price target on

. In the report, Credit Suisse noted, “We continue to expect home sales will increase only gradually coupled with slowing price growth (particularly given RLGY's tough price comps as mix becomes less of a tailwind and possibly a headwind), leading to '15/'16 results below consensus. We are raising our '14 adj. EBITDA est. to $755 mln from $732 mln on the 3Q beat, as our 4Q est. moves to $159 mln from $162 mln. On a comparable basis with mgmt's calc, our '14 est. is $768 mln, consistent with guidance of $765-$775 mln. We are refining our '15 and '16 EBITDA ests. and now est. $811 mln (from $815 mln) and $915 mln (from $919 mln). This assumes revs of $5.7 bln (+7%) in '15, and $6.07 bln (+7%) in '16. We est. adj. EPS of $1.20 in '14 (from $1.14), $1.51 in '15 (from $1.56), and $1.97 in '16 (from $2.01).” Realogy Holdings closed on Wednesday at $41.10.