Opendoor Technologies (OPEN) PT Lowered to $0.80 at Citi

Citi analyst Ygal Arounian lowered the price target on Opendoor Technologies (NASDAQ: OPEN) to $0.80 (from $1.40) while maintaining a Neutral rating.

The analyst comments "Opendoor reported solid 1Q results but 2Q guidance represents another slowdown as housing macro pressures build. While 2Q guidance appears stronger, with profitability metrics guided ahead of expectations, the main drivers aren’t as fundamentally positive for Opendoor. It plans to materially reduce marketing spend into a softer demand environment in 2Q and lower home acquisitions to ~1,700 (60%+ Y/Y decline, and ~half our previous estimate) amid macro uncertainty (clearance rates are -25% Y/Y and delistings are +30%, while mortgage rates remain ~7%). We’re encouraged by improving profitability, but we still see a long road ahead, particularly if home purchases ramp again materially. We’re cautious on near-term as the housing market softness and lower acquisitions will pressure revenue, now expected to decline Y/Y in 2H25 (smaller, ageing inventory). Despite potentially lower revenue levels in 2H25, management is leaning into profitability and targeting Y/Y improvement in contribution margin."

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Freedom Broker Upgrades Serve Robotics (SERV) to Buy
• Mosaic sets pricing for tender offers on up to $1.4B in debt