William Blair analyst Stephen Sheldon has reiterated their bullish stance on REAX stock, giving a Buy rating on March 7.
Stephen Sheldon has given his Buy rating due to a combination of factors that highlight Real Brokerage’s strong growth potential and competitive positioning. After meeting with the company’s management, Sheldon is optimistic about Real’s ability to expand its monetization efforts in new areas such as mortgage, title, and the Real Wallet. This optimism is bolstered by the company’s impressive growth in gross profit, which increased by 82% in 2024 despite a challenging housing market.
Additionally, Sheldon notes that Real Brokerage is rapidly increasing its agent count, adding 10,500 agents in 2024, which represents a 77% growth. This expansion is occurring without offering upfront financial incentives, indicating the value Real provides to its agents. The company’s shares are trading at a premium compared to its peers, which Sheldon believes is justified given Real’s potential to capitalize on a recovery in housing activity. He expects Real to achieve above-average gross profit growth, with significant upside potential for 2025 and 2026 estimates, making the current valuation attractive.
In another report released on March 7, Roth MKM also maintained a Buy rating on the stock with a $8.00 price target.
Based on the recent corporate insider activity of 172 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of REAX in relation to earlier this year.
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