Cantor Fitzgerald has opened coverage on Better Home & Finance Holding (NASDAQ: BETR) with an Overweight rating and set a $40.00 price target, according to its Tuesday report. The research note frames the company as a technology-first mortgage lender positioned to capture additional share in a fragmented market with persistent inefficiencies.
Central to Cantor's thesis is Tinman, Better's AI-powered, automated rules-based decision engine. The firm describes Tinman as a differentiator that enables faster scaling relative to legacy lenders, supporting the company’s reported 43.8% revenue increase over the last twelve months. Cantor emphasizes that this technology-led approach underpins both origination efficiency and the expansion of higher-margin offerings.
The research team pointed to Better’s marketplace-style, capital-light lending model as a structural advantage that limits direct credit exposure versus traditional, balance-sheet lenders. Cantor also noted the company’s growing white-label, high-margin SaaS revenue stream as a positive component of the business mix.
However, Cantor’s note cautions investors to monitor leverage. InvestingPro data cited in the report shows Better carries a debt-to-equity ratio of 13.2 at present, a metric the firm highlights as noteworthy for stakeholders evaluating balance-sheet resilience.
Valuation and financial outlook
Cantor Fitzgerald derives its $40 price target from a multiple-based approach. The firm applies 13 times its fiscal 2027 adjusted EBITDA estimate of $90 million to arrive at the target value. That projection implies a material improvement from Better’s current reported adjusted EBITDA of -$51.5 million, signaling a multi-year recovery pathway in the research firm's model.
Market drivers and timing
The research note anticipates that additional interest-rate cuts in 2026 could unlock pent-up purchase and refinance demand, which Cantor expects would accelerate loan volume and revenue for Better. The firm frames rate normalization as a potential catalyst for the company’s marketplace dynamics and revenue growth.
Operational evidence - NEO Home Loans partnership
In related company disclosures, Better continues to point to operational gains in its white-label partnerships. A press release from Better Home & Finance Holding Company highlighted NEO Home Loans, which is powered by Better’s Tinman platform. According to the release, adoption of Tinman drove measurable production efficiency and cost improvements in 2025 versus the prior year.
The release states that the partnership, now in its second year, expanded NEO’s annual production run rate from $1.5 billion to $2.6 billion, an increase of more than $1.1 billion generated across 32 new teams. Cantor cites these operational gains as evidence of the platform’s ability to scale partner production.
Risk factors and volatility
Cantor identifies several risks to its bullish view, including interest-rate movements, housing market supply dynamics, credit performance, competitive pressures, and legal and regulatory challenges. The report also references InvestingPro data indicating a beta of 2.01 for BETR, suggesting the stock has historically moved with roughly twice the volatility of the broader market. InvestingPro has flagged additional risks and opportunities, noting there are 13 more ProTips available for subscribers.
Investors are advised to weigh the company’s rapid revenue growth and scalable technology against current negative adjusted EBITDA and an elevated debt-to-equity ratio as they consider exposure to the stock.