Goldman Removes from Recommended List

Analyst Anthony Noto notes concerns of a substantial housing turnover slowdown (HOMS ) was removed from Goldman's recommended list. Goldman now rates the stock market outperform.

Analyst Anthony Noto says the downgrade comes after EBITDA growth concerns, segment analysis, and execution risk. He ssubscription business is likely not to be profitable based on his segment analysis, thus the company is overly dependent on ad revenues for profitability. Notes concerns of substantial housing turnover slowdown. Says real estate related online advertising likely to be depressed. Says consequently the company must rationalize costs, he's taking more conservative posture. Sees limited downside absent any incremental negative news on September 11.

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