Copyright Benzinga
Opendoor Technologies Inc.'s (NASDAQ:OPEN) turnaround is shifting into high gear. JPMorgan analyst Dae K Lee says a "major transformation is underway" as new management "refounds the company" and pivots to a volume-driven strategy designed to clear legacy inventory and accelerate acquisitions. Track OPEN stock here. Lee maintains an Overweight rating and $8 price target for December 2026 and says the home-flipping platform's reset could finally steer it toward sustained profitability. Opendoor Targets 2026 Profitability With Volume Growth The company's third-quarter results have been clouded by the hangover of a "risk-averse approach" from prior leadership, but Lee sees that clean-up phase as necessary groundwork. With spreads reduced and pricing models recalibrated, Opendoor expects acquisitions to increase by at least 35% quarter over quarter in the fourth quarter. Read Also: Opendoor’s Buyer Perks Are A ‘Nothing Burger’ — Business Model Still A Mystery, Says Hedge Funder The goal: net income breakeven by the end of 2026, powered by contribution margins in the 5–7% range and tighter resale velocity. JPMorgan now projects 2027 revenue around $8 billion, underscoring confidence in the rebuild. AI, Data Give Opendoor An Edge According to Lee, Opendoor is "leveraging technology and data to transform how homes are bought and sold." From AI-driven pricing and workflow automation to new ancillary services like mortgage and warranty offerings, the company is betting on efficiency to boost per-transaction margins. While he admits "the transformation won't be easy or linear," Lee says the U.S. real estate market remains "ripe for disruption" — and Opendoor has the technology and scale to lead it. Opendoor's path to profitability depends on one thing — speed. If management can scale acquisitions and control costs simultaneously, JPMorgan says the stock's recovery could mirror its market-shaping ambition. Read Next: What’s Next for Opendoor? $39M Settlement, Investor Concerns, And Margin Pressure Photo: Shutterstock
