Piper Jaffray analyst Jason Deleeuw upgraded Redfin (RDFN) 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.
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