DA Davidson analyst Tom White downgraded Redfin to Neutral from Buy and lowered his price target to $22 from $28 after its Q2 results and below-consensus Q3 guidance. The analyst states that the fundamental outlook for the company for the next several quarters appears to have "significantly weakened", with outperformance for the stock in the next 12 months becoming unlikely. Despite the strong Q2, White points to a "sharp" volume slowdown in July, with low levels of for-sale home inventory and the upward pressure on home prices eroding the buyer power in the company's key markets. With the emerging macro challenges, the analyst contends that it will be more difficult for Redfin to deliver meaningful upside to sales and profits.

Real Estate Services Analysts, along with James Dwiggns, CEO of NextHome, discuss the latest perspectives on the proposed National Association of Realtors (NAR) Settlement and the implications on brokerage business models (relevant companies ZG/Z, CSGP, COMP, RDFN, EXPI, HOUS, FTHM, REAX, RMAX) on an Analyst/Industry conference call to be held on May 1 at 11 am.