Why Redfin Stock Came Up Today

Actions of Redfin (RDFN 1.28%) moved higher again today after the online real estate brokerage received an upgrade from a Wall Street analyst.

It was the latest good news for Redfin, which responded favorably to expectations that interest rates will drop at the next Federal Reserve meeting later this month.

As of 11:21 a.m. ET, the stock was up 7.8% after gaining as much as 15.8% earlier in the session.

Redfin’s breakout continues

this morning B. Riley upgraded Redfin from neutral to buy and raised its price target from $7.50 to $13.

Riley said the company is reporting fundamental improvements in its core brokerage business and was bullish on Redfin Next, a new program designed to recruit more agents to its platform by allowing them to take advantage of Redfin’s resources and technology and allowing them to keep more commissions. .

The research firm also believes the company is well-positioned for the near-term turnaround in the housing cycle, as housing demand is expected to rebound as rates fall. Finally, Riley said Redfin’s earnings before interest, taxes, depreciation and amortization (EBITDA) should turn positive in 2025 and expand there.

The price target assumes a 29% upside for the stock over the next year.

Can Redfin keep winning?

Investor momentum appears to be aligning around Redfin as interest rates appear to be falling.

Like the rest of the real estate industry, the company has struggled in the current economic landscape, but Redfin has streamlined its business and cut losses after several rounds of layoffs and shuttered its iBuying business, Redfin Now.

The company still has to prove itself, but the stock has huge upside potential if it can capitalize on the upcoming housing market rebound.