Offerpad Solutions downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Dae Lee downgraded Offerpad Solutions (OPAD) to Neutral from Overweight without a price target. The analyst believes there is "meaningful downside risk" to consensus expectations. The firm prefers "bigger scale leaders," like Zillow (ZG) and Opendoor (OPEN). Offerpad’s pace of home acquisitions should be accelerating through Q1, but a much more significant jump in activities is needed to meet consensus expectations for Q2, JPMorgan contends. It thinks the likelihood of such acceleration is low since macro data suggests real estate activities should remain depressed near-term. The company has also narrowed the scope of homes considered to adapt to the current riskier environment, it adds.