Opendoor rises; Morgan Stanley triples PT to Street-high of $6, stays "neutral"

Opendoor Technologies

20/10/2025 18:31

** Shares of online residential real estate firm Opendoor Technologies OPEN.O up 4.1% at $7.46 on Mon

** Morgan Stanley hiked its PT from $2 to $6, highest on Wall Street, though maintained its 'equal-weight' rating in a broader note on the internet sector heading into Q3 earnings season

** "While we see limited fundamental justification for OPEN's recent outperformance, we also see the opportunity for a pivot back to home-buying (and significant operating leverage) should there be a stronger housing market recovery," MS analyst team led by Brian Nowak wrote

** "Moreover, similar situations with other stocks have shown that higher valuations are not only often more sustainable than expected, but also create the opportunity for companies to raise capital and address challenges with the support of an enthusiastic shareholder base"

** OPEN has a strong position in iBuying, but co is still navigating a challenging housing market, Nowak said, adding while he expects it to reach "modestly positive" EBITDA margins over time, "the path to profitability remains a key debate"

** On Sept 11, OPEN shares soared 80% for a record daily gain to $10.52 after co appointed Shopify SHOT.TO executive Kaz Nejatian as its new CEO, and said co-founders Keith Rabois and Eric Wu will return to the board

** From research coverage perspective, just 1 analyst rates OPEN "buy", while 6 have "hold" and 4 recommend "sell" or "strong sell"; median PT is $1, per LSEG data

** OPEN, which has seen meme stock-like activity since the summer, hit intraday all-time low of 51 cents in late Jun

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com ; 1-646-279-6380))