BUZZ-Needham downgrades Vacasa to 'hold'

Brokerage Needham downgrades vacation rental management co Vacasa Inc VCSA.O to "hold" from "buy"

Says co is facing significant challenges in increasing its supply of rental properties

Estimates Gross Booking Value (GBV) to decline through 2025, dragged by lower GBV per night sold as well as declining nights sold

However, Needham sees opportunity for VCSA to aggregate demand by providing better outcomes for property owners who use its purpose-built tech stack, generating more money and spending less time on managing rentals

Co announced on Monday it will merge with fellow vacation rental firm Casago, which will acquire Vacasa shares at $5.02 each

Avg. rating of six brokerages covering the stock is a "hold"; median PT $3.25 - LSEG

Up to Monday's close, stock down ~41% YTD

(Reporting by Joel Jose in Bengaluru)

((joeljose@thomsonreuters.com))