Stephens, the investment research firm, elevated its price target on Opendoor Technologies (NYSE: OPLN) to $37.00 on Friday, up from its prior target of $35.00. The firm continues to maintain an Overweight rating on the stock, signaling confidence in the company's prospects. This assessment comes ahead of Opendoor’s expected fourth-quarter 2025 earnings report, which Stephens anticipates will be released in mid-February. The earnings are projected to align with Wall Street consensus estimates and to fall at the upper end of the company's guidance issued after the third quarter of 2025.
Stephens highlights that Opendoor is commencing 2026 with positive momentum, particularly buoyed by excitement about an upcoming lease return inflection point. The company is also positioning itself under a fresh ticker symbol, reflecting rebranding efforts. Adding to this forward-looking posture, Opendoor plans to hold an analyst day event in Florida on March 3 to outline its strategic objectives for the year.
The rationale behind Stephens’ increased price target is attributed to two main factors: the impact of a preferred stock repurchase transaction undertaken by Opendoor and the natural progression of time that enhances the EBITDA figure used in valuation multiples. Additionally, the inclusion of an extra quarter of cash generation supports the higher price forecast.
In related news within the automotive auction sector, Kar Auction Services recently reported robust third-quarter earnings, surpassing analyst expectations with adjusted earnings per share of $0.35 versus the predicted $0.27. The company’s revenue reached $498 million, beating estimates of $464.35 million and representing an 8% increase from the previous year. This growth is mainly driven by a 20% rise in auction fee revenue. Following these strong results, Kar Auction Services has also raised its full-year guidance.
Barclays has initiated coverage on Kar Auction Services with an Overweight rating and set a price target of $32.00, anticipating outperformance within the market. Notably, the parent company Openlane announced its New York Stock Exchange ticker symbol will switch from "KAR" to "OPLN," effective December 26, 2025. This change aims to better align the company’s public identity with its evolving corporate branding.
Furthermore, Openlane has expanded its Canadian receivables program limit to C$500 million through an amendment involving major financial institutions including the Bank of Montreal and the Royal Bank of Canada. These strategic and financial developments highlight the company’s ongoing repositioning and operational growth within the automotive auction and technology markets.
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Stephens has increased its price target for Opendoor Technologies to $37 from $35 and kept an Overweight rating, citing anticipated earnings in line with estimates and promising growth prospects. The company’s transition to a new ticker symbol and upcoming analyst day contribute to positive investor sentiment. Meanwhile, Openlane's recent strategic moves, including a ticker change and growth in auction fee revenue, underscore their evolving market position.
Key Points
- Stephens raises Opendoor Technologies’ price target to $37 while maintaining an Overweight rating, anticipating solid earnings in Q4 2025.
- Opendoor's upcoming analyst day in Florida on March 3 highlights strategic initiatives as the company begins 2026 with momentum, including a lease return inflection and new ticker symbol.
- Kar Auction Services reports stronger-than-expected Q3 earnings and revenue growth, with Openlane changing its ticker symbol to OPLN and increasing its Canadian receivables program limit.
Risks
- Opendoor’s projected results are contingent on meeting earnings guidance and market expectations, posing a risk if actual performance deviates downward.
- Changes in EV/EBITDA multiples and hesitation in preferred stock repurchases could affect Opendoor's valuation and stock performance.
- Market reception to Openlane's ticker symbol change and financial program expansions involves uncertainty and potential impacts on investor confidence.