Curtis Nagle, an analyst from Bank of America Securities, reiterated the Sell rating on Opendoor Technologies (OPEN – Research Report). The associated price target was lowered to $1.25.
Curtis Nagle has given his Sell rating due to a combination of factors impacting Opendoor Technologies. Despite the company exceeding expectations in the fourth quarter with higher home sales and revenue, its future outlook remains concerning. The first quarter projections fall short of market expectations, with anticipated revenue and EBITDA figures below analyst estimates. This is compounded by a slow start to the spring selling season and ongoing macroeconomic pressures, such as high interest rates, which are expected to continue affecting the company’s sales and growth.
Additionally, Nagle has lowered revenue and gross profit estimates for 2025 and 2026, reflecting challenges in the housing market and Opendoor’s business model. The company’s strategic expansion efforts are overshadowed by affordability issues and the risk of prolonged high-interest rates, which could further impact inventory turnover and profitability. The ongoing use of an ATM equity program highlights financing challenges and increases the risk of stock dilution. Without a clear path to profitability, these factors contribute to a cautious outlook and reinforce the Sell rating.
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