Analyst Projects Opendoor Valuation to Soar, Citing Market Position and Growth Potential
an analyst has projected that Opendoor’s stock could reach $82 per share, a notable increase that would value the company at approximately $60 billion. This projection is based on the company’s potential to achieve multiples similar to those of industry peers like Zillow and Carvana,which currently trade at 4 to 7 times forward revenue. Opendoor’s current forward price-to-sales ratio is considerably lower, under 1.
This optimistic outlook comes as competitors Zillow and Redfin have exited the instant-buying home market. This strategic shift leaves Opendoor with minimal competition in offering homeowners a streamlined online cash sale process, bypassing traditional, lengthy sales and closing procedures.
The analyst’s model anticipates that opendoor’s revenue growth and expanding market share will pave the way for sustained profitability.This, in turn, is expected to drive investor sentiment and lead to a re-evaluation of the company’s market multiple. The analyst specifically cited Carvana’s trajectory as a benchmark, suggesting that Opendoor can similarly demonstrate a permanent shift towards profitability, thereby justifying a higher valuation.
The analyst, who has been actively sharing insights on the social media platform X, recently detailed a personal challenge where 99.5% of his assets under management (AUM) disappeared in 2022 after his primary investor withdrew. He described this period as a near shutdown of his fund, even with encouragement from his wife and accountant to do so. He is now leveraging his recent social media engagement to attract investment, while also transparently acknowledging the inherent risks involved. He emphasized that his reputation is paramount and contingent on his ability to consistently identify strong investment opportunities.