Needham analyst Bernie McTernan has reiterated their neutral stance on RDFN stock, giving a Hold rating today.
Bernie McTernan’s rating is based on several factors impacting Redfin’s financial outlook. Following the company’s fourth-quarter earnings report, McTernan adjusted his 2025 EBITDA estimates significantly downward due to lower margins and revenue, indicating concerns about Redfin’s ability to generate substantial profits. This cautious stance is reflected in the Hold rating, as the potential for material profitability remains uncertain.
However, there are some positive developments that could influence future performance. The increase in agent count by 25% since the third quarter suggests potential for improved productivity, which might lead to better-than-expected results in the latter half of 2025. Additionally, a recent rental deal with another company is anticipated to enhance profitability, with expectations that rental-related EBITDA could triple compared to the previous year. These factors present upside risks to the current estimates, but the overall outlook remains cautious for now.
McTernan covers the Consumer Cyclical sector, focusing on stocks such as DraftKings, Super Group (SGHC), and Rush Street Interactive. According to TipRanks, McTernan has an average return of 3.4% and a 47.91% success rate on recommended stocks.