Although Opendoor Technologies Inc (NASDAQ:OPEN) reported its second-quarter results below expectations, the company’s fundamentals are improving with "strong momentum" towards its adjusted net income (ANI) milestone, according to JPMorgan.
The Opendoor Technologies Analyst: Analyst Dae K Lee reiterated an Overweight rating and price target of $8.
The Opendoor Technologies Thesis: The company’s revenue grew 23% sequentially to $883 million, with contribution profit up 59% to $51 million and the highest contribution margin in two years, of 5.8%, Lee said in the note.
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ANI came in at -$30 million, with momentum building toward management’s target by year-end, the analyst stated. "At current volumes, margins & cost base, OPEN could reach ANI profitability on a 12-month go-forward basis into next year, no macro recovery required," he further wrote.
