2023-06-01 09:19:35 ET
- William Blair analyst Stephen Sheldon said The Real Brokerage ( NASDAQ: REAX ) warrants an Outperform rating in his new coverage of the stock, citing its transactional efficiency, its ability to attract agents, and its large addressable market.
- The Toronto-based residential real estate brokerage's cloud-based platform, designed specifically for mobile usage, "provides efficiency, visibility, and collaboration throughout the home transaction process," he wrote in a note to clients.
- "The efficiency is evident in Real's overhead (1:114 employee-to-agent ratio, much higher than industry averages), which should allow it to maintain its favorable agent economics, reinvest strategically, and be profitable," Sheldon said.
- As management said in its Q1 earnings call, The Real Brokerage ( REAX ) expects to become adjusted EBITDA profitable in Q2.
- Sheldon's Outperform rating aligns with the average Sell-Side rating of Buy.
- Late last year, Real Brokerage ( REAX ) created the role of president and named a new chief operating officer.
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The Real Brokerage gets Outperform rating at William Blair on efficiency edge