Citizens JMP Reiterates Market Outperform Rating on Offerpad Solutions Inc. (OPAD)

Citizens JMP analyst Nicholas Jones reiterated a Market Outperform rating and $4.50 price target on Offerpad Solutions Inc. (NYSE: OPAD).

The analyst commented, “Offerpad Solutions Inc. reported mixed 4Q24 results, with revenue finishing in line with consensus, but adjusted EBITDA coming in below the Street's expectations. Guidance for 1Q25 was softer than expected, particularly for revenue, homes sold, and home acquisitions, sending shares ~8% lower in aftermarket trading. While industry conditions continue to pressure OPAD's business, we remain encouraged by management's focus on improving its cost structure, as indicated by ~$70M and ~$44M of cost savings in 2023 and 2024, respectively, with continued cost improvements expected in 2025.”

Also, “Additionally, OPAD continues to make nice progress expanding its asset-light services, which represented 33% of contribution profit after interest in 4Q, and its Agent Partnership Program, which now represents nearly one-third of acquisitions, leading to improved advertising efficiencies and customer acquisition cost (CAC). From here, we look for line-of-sight into when OPAD will be able to increase its home acquisition cadence, ultimately leading to improved top-line growth and supporting the company on its path to reaching adjusted EBITDA breakeven, in our view.”

For an analyst ratings summary and ratings history on Offerpad Solutions Inc. click here. For more ratings news on Offerpad Solutions Inc. click here.

Shares of Offerpad Solutions Inc. closed at $2.20 yesterday.

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