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Opendoor Technologies initiated with a Neutral at UBS

UBS initiated coverage of Opendoor Technologies with a Neutral rating and $2.75 price target. The analyst sees a path to the company’s target volumes and contribution margins in mid-2024 and to positive adjusted net income. However, the firm is concerned “we are not yet out of the woods on risks” around housing pricing volatility, particularly given the UBS economics “dim views” for 2024. As such, it believes Opendoor will not achieve its sales targets until 2025.

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