01:26 PM EDT, 03/22/2024 (MT Newswires) -- Compass (COMP) is expected to benefit from the increased adoption of buyer agreements and the return of existing home sales to normal levels, Oppenheimer said in a note to clients Friday.

"A buyer agreement should significantly increase productivity and could drive more two-sided transactions," Oppenheimer said. Buyer agreements were previously considered taboo before finding a home, according to the note.

Oppenheimer also expects significant earnings before interest, taxes, depreciation and amortization upside on lower fixed costs as existing home sales return to normal levels within a range of 5.3 million to 5.5 million. The firm estimates a 50% upside to its 2025 EBITDA estimate on 5.3 million existing homes sold, according to the note.

Compass said Friday that it agreed to pay $57.5 million to settle two class-action lawsuits alleging violations of the Sherman Antitrust Act. The proposed settlement deal remains subject to preliminary and final court approval.

Oppenheimer said it estimates a settlement of around $75 million.

The investment firm maintained its outperform rating and $6 price target on Compass.

Price: 3.47, Change: -0.08, Percent Change: -2.12