After Stephens and Cowen & Co. gave Redfin Corp (NASDAQ: RDFN) a Buy rating last month, the company received another Buy, this time from SunTrust Robinson. Analyst Naved Khan initiated coverage with a Buy rating on Redfin Corp today and set a price target of $23. The company’s shares opened today at $17.89.
Khan noted:
“We note the market is currently dominated by traditional brokerages and agents, with ~2M active licensed professionals in the industry (National Association of Realtors). For RedfinNow (Redfin’s iBuyer business) we estimate the TAM at ~$1.8T, based on 2018 existing home sales volume (NAR). We note Redfin is still in the early stages of realizing its market opportunity with <1% share of the market even after years of robust growth. We estimate the TAM for mortgage origination at ~$30B. Competitive Advantages. Redfin has been increasing its market share through a tech- focused brokerage model that has several key advantages vs. traditional players. With its low cost offering, the company attracts sellers with a 1-1.5% fee vs. 2.5-3% charged by traditional brokers."
According to TipRanks.com, Khan is a top 100 analyst with an average return of 21.8% and a 76.9% success rate. Khan covers the Technology sector, focusing on stocks such as Endurance International, Wix.com Ltd, and trivago NV.
Currently, the analyst consensus on Redfin Corp is a Moderate Buy with an average price target of $22.17.
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The company has a one-year high of $26.01 and a one-year low of $13.50. Currently, Redfin Corp has an average volume of 1.02M.
Based on the recent corporate insider activity of 60 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RDFN in relation to earlier this year.
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Redfin Corp. is a technology-powered residential real estate brokerage, which engages in buying and selling homes. It operates through the following segments: Real Estate, Properties and Other. The Real Estate segment revenue is derived from commissions and fees charged on real estate services transactions.
