** 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))