In a report released yesterday, Jake Fuller from BTIG maintained a Buy rating on Opendoor Technologies (OPEN – Research Report), with a price target of $3.50.
Jake Fuller’s Buy rating for Opendoor Technologies is based on a number of key considerations. Firstly, Fuller highlighted the company’s return to positive unit economics in the third quarter, despite operating at an EBITDA loss due to limited sales volume. Furthermore, the company managed to sell a significant proportion of their homes and purchased even more, indicating a potential for growth. Opendoor’s ability to adjust listing prices in response to a slowing market clearance rate was also noted as a positive strategic move, even though it impacted the fourth quarter outlook.
Fuller also factored in Opendoor’s future plans, particularly its goal to reach a revenue run-rate of $10 billion by mid-year. Despite a more cautious housing market outlook and a reduced price target, Fuller maintained the Buy rating because of Opendoor’s positive unit economics and the successful clearance of old inventory. The valuation was also based on the projection of selling approximately 35,000 homes with a 6% contribution margin and overhead at 4.5% of revenue in 2026. Overall, despite some short-term challenges, Fuller believes in the long-term potential of Opendoor Technologies.
In another report released on November 2, JMP Securities also maintained a Buy rating on the stock with a $3.50 price target.
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Based on the recent corporate insider activity of 66 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of OPEN in relation to earlier this year.
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Opendoor Technologies (OPEN) Company Description:
Social Capital Hedosophia Holdings Corp II is a blank check company. It is formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses.
Read More on OPEN:
- Opendoor Technologies price target lowered to $3.50 from $5.00 at JMP Securities
- Opendoor Technologies sees Q4 revenue $800M-$850M, consensus $1.14B
- Opendoor Technologies reports Q3 EPS (16c), consensus (15c)
- Dana Hamilton joins Opendoor Board of Directors
- Opendoor Announces Third Quarter of 2023 Financial Results
