Offerpad Solutions downgraded to Market Perform from Outperform at Citizens JMP

Citizens JMP analyst Nicholas Jones downgraded Offerpad Solutions (OPAD) to Market Perform from Outperform without a price target following the Q1 report. The company’s guidance for Q2 was softer than expected, as Offerpad continues to navigate a challenging industry environment, exacerbated by broader macro uncertainty related to tariffs, the analyst tells investors in a research note. The firm remains encouraged by the company’s improvements to its cost structure over the past couple of years and the long-term prospects of its product market fit, but believes increasing macro uncertainty “has further clouded the picture for investors.” Further, Offerpad’s “capital-intensive” cash offer business could make it more difficult to raise additional capital given macro headwinds, which may result in further restructuring at the company, which would likely impact near-term growth and profitability, contends Citizens JMP.