Wedbush: Redfin Has Room For Further Upside After 55% Return
Up more than 50 percent in 2019, shares of online real estate brokerage company Redfin Corp (NASDAQ: RDFN) have upside potential ahead given its leadership position, according to Wedbush.
The Analyst
Wedbush's Ygal Arounian initiated coverage of Redfin with an Outperform rating and $30 price target.
The Thesis
Redfin brings a unique proposition to the real estate market, which Arounian says is "notoriously slow" to embrace much needed technological changes and improvements. Specifically, Redfin's online platform connects its own agents with its technology to create a service that is "faster, better and costs less" for both home buyers and sellers.
Redfin's agent software is able to analyze customer interactions and provide a template for lead agents to recommend listings, schedule follow ups, prepare marketing materials that analyze comparative markets, and generate an offer. The company is leading the charge in changing the consumer real estate's reputation as being the "last consumer industry" that has yet to be impacted favorably through technological advancements, Arounian wrote in a note.
Meanwhile, competitors continue scrambling to create a rival platform to Redfin but the company already has a significant advantage. The company has already built and introduced a product that "has both the look and feel" of an online portal that prioritizes technology-driven initiatives.
The analyst says the biggest risk to the stock would be a longer-than-expected timeline towards profitability or a more challenging path.
Price Action
Redfin's stock was trading nearly flat at $22.64.
Related Links:
RBC Capital Markets Expects Redfin's Revenue Growth To Be Consistent Year-Over-Year
Analyst: Redfin An 'Attractive' Play In Disruption Of The B Real Estate Brokerage Industry
Latest Ratings for RDFN
Apr 2019 | Wedbush | Initiates Coverage On | Outperform | |
Apr 2019 | Susquehanna | Downgrades | Positive | Neutral |
Apr 2019 | PiperJaffray | Upgrades | Neutral | Overweight |
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