© Reuters. Redfin (RDFN) cut at DA Davidson after share price surge
Real estate broker Redfin (NASDAQ:) was cut to Underperform from Neutral at DA Davidson, with a $10 per share price target in a research note Wednesday.
DA Davidson analysts said in the note, the downgrade was based on the company’s valuation and “lagging listing share.”
“RDFN shares are up ~260% thus far in CY’23 and up ~47% over the past month, making RDFN the top-performing name in our broader Prop Tech coverage by a wide margin (shares are up 31% just this week),” they explained.
“Over the past few quarters, RDFN has made progress towards its goal of achieving sustainable profitability (largely via cost cuts in its core brokerage and reorienting around higher-margin revenue streams), but we believe this early progress is now fully reflected in RDFN’s current valuation.”
After a significant almost 24% jump on Tuesday, which took the stock above $15.50 per share, RDFN is down almost 3% premarket on Wednesday at $15.08.
