William Blair analyst Stephen Sheldon has maintained their bullish stance on REAX stock, giving a Buy rating today.
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Stephen Sheldon’s rating is based on the impressive growth trajectory and strategic advancements of Real Brokerage. The company reported strong first-quarter results, with revenue and gross profit significantly surpassing both estimates and consensus figures. This performance is particularly noteworthy given the current subdued housing market. Additionally, Real Brokerage’s ability to generate solid adjusted EBITDA and maintain positive free cash flow further supports the positive outlook.
Sheldon also highlights the company’s potential to capitalize on a recovery in housing transactional activity. Real Brokerage is well-positioned to expand its agent base rapidly and integrate ancillary solutions, which could lead to substantial growth in profit and free cash flow. Despite trading at a premium compared to its peers, this valuation is deemed justified due to the company’s strong growth prospects and potential for upside in future estimates.
Sheldon covers the Technology sector, focusing on stocks such as Udemy Inc, Olo, and Par Technology. According to TipRanks, Sheldon has an average return of 0.9% and a 51.43% success rate on recommended stocks.
In another report released today, BTIG also maintained a Buy rating on the stock with a $6.00 price target.