Opendoor (NASDAQ:OPEN) shares jumped more than 5% pre-market today after JMP Securities raised the price target from $2.50 to $5, citing improved contribution profit due to lower home price volatility.
The analysts highlighted Opendoor’s better-than-expected Q1/23 results, positive Q2/23 guidance, and evidence of improving industry trends. Despite low transaction volumes, stabilizing home price volatility suggests higher revenue and contribution profits.
JMP Securities sees Opendoor’s solutions as disruptive and expects stock price appreciation as profitability expectations improve.