Curtis Nagle, an analyst from Bank of America Securities, reiterated the Sell rating on Opendoor Technologies. The associated price target was raised to $0.80.
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Curtis Nagle has given his Sell rating due to a combination of factors impacting Opendoor Technologies. Despite a better-than-expected performance in the second quarter, driven by higher home sales and reduced general and administrative expenses, the company’s outlook remains concerning. The third-quarter revenue and earnings projections fall short of market expectations, largely due to a weakening housing market and reduced acquisition volumes.
Moreover, Nagle has adjusted future revenue and profit estimates downward, reflecting lower home sales and a cautious approach to inventory growth. The analyst remains skeptical about Opendoor’s business model and its ability to achieve sustainable profitability, especially with high mortgage rates affecting demand. The recent surge in stock price is attributed to retail interest rather than improvements in the company’s fundamentals, leading to concerns about potential stock pullbacks as interest wanes.
OPEN’s price has also changed dramatically for the past six months – from $1.380 to $2.520, which is a 82.61% increase.