Nicholas Jones CFA, an analyst from JMP Securities, maintained the Buy rating on Offerpad Solutions (OPAD – Research Report). The associated price target is $12.00.
Nicholas Jones CFA has given his Buy rating for Offerpad Solutions based on a variety of factors. These factors include the company’s solid 3Q23 results, with revenue and adjusted EBITDA largely meeting consensus estimates. Offerpad Solutions’ contribution profit and contribution profit after interest exceeded the Street by 19% and 34%, respectively. Despite the mixed guidance for 4Q, with revenue and homes sold falling short of consensus but adjusted EBITDA exceeding the Street, there were several bright spots in the quarter.
Notably, Offerpad Solutions’ asset-light services like Direct Plus, Renovate, and Flex Listing have been gaining traction, representing nearly 50% of all transactions in the past two quarters. This shows Offerpad’s successful shift towards a less capital intensive business model. Additionally, the company has managed to prioritize profitability amidst challenging economic and industry conditions, cutting its cash burn rate by over $20 million heading into 2024. Management still expects to close the year with profitable adjusted EBITDA. This solid performance, coupled with the company’s successful shift to a more asset-light model, are key reasons behind Nicholas Jones’ Buy rating.
Jones CFA covers the Technology sector, focusing on stocks such as Amazon, Xometry, and Expedia. According to TipRanks, Jones CFA has an average return of 12.2% and a 46.19% success rate on recommended stocks.
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Offerpad Solutions (OPAD) Company Description:
Supernova Partners Acquisition Co Inc is a blank check company.
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