BTIG analyst Jake Fuller has maintained their neutral stance on RDFN stock, giving a Hold rating today.
Jake Fuller has given his Hold rating due to a combination of factors affecting Redfin’s current and future performance. In the fourth quarter, Redfin’s results were largely in line with expectations, but the company experienced a decline in transaction share attributed to agent turnover during a transition in their compensation model. Additionally, Redfin’s EBITDA fell short, partly due to increased agent pay.
Looking ahead, Redfin’s guidance for the first quarter is below market consensus, with the company planning to significantly increase marketing expenditure despite negative signals from the housing market. This aggressive spending strategy, coupled with uncertainties in the housing sector and changes in Redfin’s business model, makes it challenging to predict the company’s long-term prospects. As a result, Fuller remains cautious and opts for a Hold rating, reflecting the uncertain profit outlook and difficulty in constructing a reliable valuation framework for the stock.
Fuller covers the Consumer Cyclical sector, focusing on stocks such as Expedia, TripAdvisor, and Maplebear. According to TipRanks, Fuller has an average return of 5.5% and a 52.43% success rate on recommended stocks.