Fathom initiated with Buy, $37 target at B. Riley

As previously reported, B. Riley analyst Raj Sharma initiated coverage of Fathom with a Buy rating and $12 price target. The analyst likes the company’s “innovative and disruptive” virtual real estate brokerage business. Fathom’s “excellent” economics, a supportive culture, and strong referral incentives have allowed it to grow to 37 states with a low cost of agent acquisition and low agent churn, the analyst tells investors in a research note. The firm says the company’s model is highly scalable.