Piper Jaffray analyst Jason Deleeuw upgraded Redfin to Overweight from Neutral and raised his price target for the shares to $26 from $17. The stock closed Friday down 3c to $20.27. The recent dovish shift in Federal Reserve rate policy will be favorable for home purchase activity, Deleeuw tells investors in a research note. The analyst believes the new, lower rate environment will modestly improve home sales trends and boost the returns on Redfin's mass media marketing spend initiatives. As such, he has increased confidence the company's revenue growth will accelerate this year and gross margin will expand.

Bearish flow noted in Redfin with 5,561 puts trading, or 1.8x expected. Most active are Jan-26 5 puts and Jan-26 5 calls, with total volume in those strikes near 5,100 contracts. The Put/Call Ratio is 1.82, while ATM IV is up over 1 point on the day. Earnings are expected on May 2nd.