
Offerpad Solutions (OPAD) Stock Forecast & Price Target
Offerpad Solutions (OPAD) Analyst Ratings
Bulls say
Offerpad Solutions Inc. is making notable advancements in its asset-light services, which contributed approximately 33% to the contribution profit after interest in the fourth quarter, indicating a potential for enhanced margins. The company's Agent Partnership Program has significantly improved advertising efficiencies, with customer acquisition costs decreasing by over 45% year-over-year, suggesting a strong foundation for future growth. Additionally, planned reductions in operating expenses totaling around $70 million in 2023 and $44 million in 2024, alongside expectations for improved adjusted EBITDA, positions Offerpad on a path towards achieving breakeven adjusted EBITDA by the end of 2025.
Bears say
Offerpad Solutions Inc. is facing headwinds, as indicated by its 1Q25 guidance, which shows softer-than-expected projections for revenue, homes sold, and home acquisitions, leading to an 8% decline in aftermarket trading. The ongoing pressure in the residential real estate industry, primarily due to elevated interest rates and the lock-in effect, has resulted in decreased transaction volumes, exacerbating the company's challenges. Furthermore, while its reported 4Q24 revenue aligned with consensus, the adjusted EBITDA fell short of expectations, and the forecast of selling only 450-500 homes in 1Q25 underperforms the consensus estimate of 762 homes.
This aggregate rating is based on analysts' research of Offerpad Solutions and is not a guaranteed prediction by Public.com or investment advice.
Offerpad Solutions (OPAD) Analyst Forecast & Price Prediction
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