Opendoor Technologies initiated with a Hold at Deutsche Bank

Deutsche Bank analyst Benjamin Black initiated coverage of Opendoor Technologies with a Hold rating and $2.80 price target. The analyst sees Opendoor as an innovative player in the internet buying space that differentiates itself via its technological “moat aimed at dynamically valuing, pricing, and quickly turning over homes.” However, with an increasingly challenged affordability backdrop, the firm is concerned that pricing compression could be an ultimate outcome of elevated rates. The analyst says growing pricing uncertainly could drive an upward bias to spreads that will ultimately weigh on acquisition velocity, and therefore limit Opendoor’s revenue growth upside in the near-term.