Nextdoor initiated with a Neutral at B. Riley

B. Riley last night initiated coverage of Nextdoor (KIND) with a Neutral rating and $2 price target With 100M signed-up neighbors globally and coverage of approximately one-third of U.S. households, Nextdoor’s platform connects people to their local neighborhoods and offers a unique play on the advertising opportunity associated with its hyper-local social platform, the analyst tells investors in a research note. However, the firm expects management to prioritize engagement and user experience over monetization initially, “which may lead to choppy near-term performance.” Given a lack of visibility around the timing and magnitude of the improvements from Nextdoor, along with the risk of shareholder dilution, Riley finds the stock’s risk/reward profile to be balanced at current levels.