UBS has revised its price objective for Opendoor Technologies (NASDAQ:OPEN) higher to $5.00 from $1.60 while leaving its rating on the stock at Neutral. The updated target sits just above Opendoor's most recent market price of $4.97 and remains below some analysts' more optimistic benchmarks, including a high target of $8 cited by other market participants.
In its assessment, UBS described the company's latest quarterly results as "another reset point" for its operations. The firm emphasized that investors will be watching the next earnings release, scheduled for February 19, for evidence that Opendoor can stabilize its financial trajectory.
UBS called attention to continued pressure on Opendoor's top line along with ongoing EBITDA losses across the business. Data from InvestingPro, cited in UBS's analysis, indicates Opendoor recorded an EBITDA loss of $152 million over the last twelve months and experienced a revenue decline of 4.45% during the same period. According to InvestingPro's Fair Value assessment, those metrics place the stock above what the service judges to be fair value.
Operational margin challenges remain a central concern. InvestingPro figures show Opendoor's gross profit margin at 8.01%, which UBS highlighted as evidence the company has not yet demonstrated reliable, positive unit economics at scale. For UBS, those persistent fundamental issues underpin the decision to maintain a Neutral rating despite the substantial upward revision to the price target.
Market performance has been volatile. The stock has delivered a strong cumulative return of 264% over the past year, but UBS noted that this performance has come with elevated risk, reflected in a beta of 3.69.
Related corporate developments and industry moves
In separate company news, Opendoor announced an expansion of its service footprint to cover nearly all ZIP codes within the continental United States. That expansion corresponded with a 3.1% increase in the company's share price on the day it was disclosed. Opendoor's CEO, Kaz Nejatian, spoke to the rapid growth the company has achieved, and publicly expressed support for President Donald Trump's proposal to prohibit institutional investors from buying single-family homes, stating his view on the importance of homeownership for families.
Broader market commentary included activity around Zillow Group, which was reported as remaining stable after BTIG maintained a Neutral rating on the company. RBC Capital reiterated an Outperform rating on Zillow with a $95.00 price target. UBS and other observers also noted that Google is testing a new real estate listing feature that has the potential to influence existing online real-estate platforms.
Mortgage-market policy talk also moved related stocks. The article referenced an announcement by President Trump describing a plan to purchase $200 billion in mortgage bonds intended to lower mortgage rates. Following that announcement, several mortgage- and housing-related equities climbed: Rocket Companies rose about 6%, loanDepot increased roughly 19%, and homebuilders Lennar and Toll Brothers advanced around 3% and 1%, respectively.
Investor takeaway
UBS's decision to raise the price target while keeping a Neutral rating signals a cautious stance: the firm recognizes potential upside relative to its prior valuation, yet the material revenue decline, continued EBITDA losses and weak gross margins leave fundamental questions unresolved. With the next quarterly report due on February 19, market participants will likely look for improved unit economics or clearer evidence that losses are narrowing before reconsidering conviction on the stock.