Nextdoor initiated with an Equal Weight at Wells Fargo

Wells Fargo analyst Brian Fitzgerald initiated coverage of Nextdoor with an Equal Weight rating and $3.50 price target. Given the “tough” competition that Nextdoor faces and its near-term lack of profitability, the stock’s current valuation is full and reflective of the company’s scale and growth prospects, the analyst tells investors in a research note. Nextdoor faces a set of well-established digital advertising competitors with much bigger scale and financial resources, says Wells.