BTIG analyst Jake Fuller has maintained their neutral stance on RDFN stock, giving a Hold rating yesterday.
Jake Fuller has given his Hold rating due to a combination of factors concerning Redfin’s recent performance and strategic outlook. While Redfin’s fourth-quarter results met guidance expectations and the first-quarter outlook was generally in line with predictions, there are concerns about the company’s decreasing market share in transactions, which has reached its lowest since the fourth quarter of 2020. The company’s service revenue also underperformed compared to Zillow, especially in the rentals segment. Additionally, Fuller is cautious about Redfin’s ongoing share losses and has a preference for the pure portal model within the sector.
Furthermore, Redfin’s strategic initiatives to revamp its core brokerage model, such as testing new agent pay structures and buyer rebates, are perceived as reasonable attempts to regain lost market share. However, these initiatives are only in the testing phase and are not expected to roll out nationwide until early 2025. This timeline introduces uncertainty regarding Redfin’s future performance, leading Fuller to adopt a wait-and-see approach. Consequently, he maintains a Neutral stance until there are more concrete signs of these strategies yielding positive results and driving share gains for Redfin.
According to TipRanks, Fuller is a 4-star analyst with an average return of 7.7% and a 49.79% success rate. Fuller covers the Consumer Cyclical sector, focusing on stocks such as TripAdvisor, Booking Holdings, and Airbnb.
In another report released yesterday, J.P. Morgan also maintained a Hold rating on the stock with a $7.00 price target.
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Redfin (RDFN) Company Description:
Redfin Corp. provides real estate brokerage services. The firm engages in buying and selling homes. It operates through the following segments: Real Estate Services and Properties. The Real Estate Services segment consists of revenue transactions. The Properties segment consists of home purchase costs, capitalized improvements, selling expenses and home maintenance expenses. The company was founded by David Selinger, David Eraker, and Michael Dougherty in 2004 and is headquartered in Seattle, WA.
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