Redfin (RDFN) Falls Following Lukewarm Wall Street Analyst Reception

Recent hot IPO Redfin (NASDAQ: RDFN) is down 5.6% in pre-open trade as Wall Street launched coverage on the stock with lukewarm ratings as the quiet period ends. The weak reception comes amid the 84% post-IPO surge in the stock.

• RBC Capital initiates coverage on Redfin Corp. (NASDAQ: RDFN) with a Sector Perform rating and a price target of $28.00.
• Stifel initiates coverage on Redfin Corp. (NASDAQ: RDFN) with a Hold rating and a price target of $24.00
• Goldman Sachs initiates coverage on Redfin Corp. (NASDAQ: RDFN) with a Neutral rating and a price target of $20.00.
• BofA/Merrill Lynch initiates coverage on Redfin Corp. (NASDAQ: RDFN) with a Neutral rating and a price target of $28.00.
• Oppenheimer initiates coverage on Redfin Corp. (NASDAQ: RDFN) with a Outperform rating and a price target of $31.00.

RBC's Mark Mahaney sums up the thinking on the Street: "Redfin is a leading technology-powered real estate brokerage with robust fundamentals. Its business model has been steadily scaling both in terms of market share & Gross Margins. Real estate is a massive sector ripe for disruption, and if Redfin’s seasoned management team continues to execute well, it should create long-term shareholder value. Near-team we believe RDFN is reasonably valued @ 5X P/S, up ~80% since IPO."

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