Bank of America Securities analyst Curtis Nagle reiterated a Sell rating on Opendoor Technologies (OPEN – Research Report) today and set a price target of $0.68.
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Curtis Nagle has given his Sell rating due to a combination of factors impacting Opendoor Technologies. Despite the company’s first-quarter revenue and EBITDA surpassing expectations, driven by higher home sales, the overall operating environment remains challenging. The housing market has been affected by macroeconomic uncertainties, including high mortgage rates, which have subdued buyer demand and increased delistings.
Opendoor’s strategy to prioritize margins over volume may impact its future growth, as the company focuses on managing risk through wider spreads. This approach, while potentially beneficial for risk management, could lead to operational expense deleverage. Additionally, concerns about the company’s path to profitability and potential dilution risks further contribute to the cautious outlook. The revised price objective of $0.68 reflects lower growth and profitability expectations, reinforcing the Underperform rating.
Nagle covers the Consumer Cyclical sector, focusing on stocks such as Wayfair, Etsy, and ACV Auctions. According to TipRanks, Nagle has an average return of -3.0% and a 48.43% success rate on recommended stocks.