Piper Sandler upgrades Redfin buyout by Rocket Mortgage for $12.5 per share
Investing.com -- Piper Sandler upgraded its rating on Redfin Corp (NASDAQ:RDFN) to Neutral from Underweight after Rocket Mortgage (NYSE:RKT) acquisition of Redfin. The deal values Redfin at $12.50 per share, more than double its Friday closing price prompting the brokerage to raise its price target from $4 to $12.5 matching the deal price.“We think the transaction is a great deal for RDFN shareholders, which has faced operational challenges around agent capacity and profitability,” analyst said. All-stock deal valued Redfin at $2.4 billion, including debt, marking a significant shift in the online real estate industry. Piper called the acquisition a strong outcome for Redfin shareholders, given the company’s recent struggles with agent capacity and profitability.