Real Matters: Demonstrating Operating Leverage and Positioned to Outperform in a Housing Market Recovery

In a report released on January 29, Daniel Chan from TD Cowen maintained a Buy rating on Real Matters Inc, with a price target of C$9.00.

Daniel Chan has given his Buy rating due to a combination of factors that highlight Real Matters’ solid positioning ahead of an eventual housing market recovery. He points to the company’s ability to beat revenue expectations in FQ1, deliver double‑digit year-over-year growth across all segments, and generate positive adjusted EBITDA in a seasonally weak quarter as evidence of resilient execution. Chan also emphasizes early signs of operating leverage, particularly in the U.S. appraisal segment, where modest revenue growth translated into outsized EBITDA expansion and margin improvements, indicating strong scalability as volumes recover.

At the same time, he notes that management has focused on controllable levers—signing new clients, deepening relationships with existing customers, tightening capital discipline, and preserving a strong balance sheet—which should allow Real Matters to capture outsized benefits when market volumes normalize. The recent onboarding of multiple new lenders, including top-100 and Tier 1 counterparts, strengthens the company’s growth runway and potential for market share gains. While Chan acknowledges macro uncertainty and near-term caution given industry volume forecasts, he views the primary risk as the timing of the recovery rather than company fundamentals, resulting in an attractive risk‑reward profile that supports his Buy recommendation.

In another report released on January 30, Cormark Securities also upgraded the stock to a Buy with a C$8.00 price target.

REAL’s price has also changed moderately for the past six months – from C$5.310 to C$6.120, which is a 15.25% increase.