The stock recently traded at $16.28, up 12%. But it slumped 60% in the six months through Wednesday amid strong industry competition.
In the quarter, revenue and adjusted earnings before interest, taxes, depreciation and amortization beat analysts’ forecasts.
KeyBanc analyst Edward Yruma has a buy rating on the Tempe, Ariz., company with a $42 price target.
Opendoor provides “some of the most compelling secular growth opportunities” in the investment bank’s coverage universe, he wrote, according to Bloomberg.
He views the second quarter as an “important inflection point” because Opendoor generated positive adjusted Ebitda.
Credit Suisse analyst Stephen Ju has an outperform rating and a $40 price target.
“The better-than-expected revenue was driven by a combination of new market expansion, all-time highs for seller offers/conversion and the ongoing buildout of Opendoor’s end-to-end digital home buying experience,” he wrote, according to Bloomberg.
The buoyant rate of home buying, as Opendoor expanded into 12 new markets, represents the highlight of the second quarter, he said.
Wedbush analyst Ygal Arounian has an outperform rating and added Opendoor to the firm’s Best Ideas list. But he cut his target price to $30 from $33.
The earnings report was impressive, and the company’s forecast indicates the core business continues to accelerate and ancillary revenue is progressing, he said, according to Bloomberg.
Oppenheimer’s Jason Helfstein rates Opendoor outperform with a $25 price target.
The second-quarter results and third-quarter projection “validate OPEN’s dominant position” in iBuying, he said.