Analyst Ryan Tomasello of KBW maintained a Sell rating on Opendoor Technologies, boosting the price target to $2.00.
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Ryan Tomasello has given his Sell rating due to a combination of factors surrounding Opendoor Technologies’ strategic and financial outlook. The company’s management has laid out a plan to achieve profitability by 2027 through reducing spreads and enhancing unit economics, yet this strategy mirrors previous targets set in early 2023 that were not realized. Tomasello remains skeptical of the company’s ability to execute these plans sustainably, especially without significant changes to its capital-intensive product strategy.
Additionally, while Opendoor has raised its earnings per share estimates and adjusted its financial targets, the reliance on retail-supported valuation and the inherent execution risks contribute to the cautious outlook. The introduction of new services and an accountability dashboard are noted, but Tomasello maintains an Underperform rating due to the fragile nature of the company’s valuation and the substantial risks involved in achieving the outlined profitability goals.