Redfin downgraded to Underperform from Perform at Oppenheimer

Oppenheimer analyst Jason Helfstein downgraded Redfin to Underperform from Perform with a $1.30 price target. The analyst says the company’s business model is “fundamentally flawed.” Redfin’s fixed-cost model for agents compared to 100% commission for the wider industry prevents the company from optimizing its margins when the housing market declines and from making share gains when it rebounds, Helfstein tells investors in a research note. He estimates it will take two years for U.S. housing demand to return to meaningful growth and says Redfin’s convertible note refinancing in late-2023 or early-2024 also “creates risk.”