 Shares of Redfin Corp. dropped 1.1% in midday trading Monday, after BofA Securities analyst Nat Schindler turned bearish on the real estate brokerage services company citing valuation concerns. Schindler cut the rating to underperform from neutral, while keeping the stock price target at $24, which is 34.7% below current levels. Schindler said data suggests pending home sales for the four weeks ending June 28 are down as much as 17 percentage points from pre-COVID-19 levels, while real estate services valuation multiples on pre-COVID estimates suggest the market is pricing in a "significant expansion" from the highs seen earlier this year. "We see current valuations leaving little room for multiple expansion or upward estimate revisions and believe continued COVID outbreaks skew risks heavily to the downside," Schindler wrote in a note to clients. The stock has more than doubled over the past three months (up 105.2%) and has run up 73.8% year to date, while the S&P 500 is little changed this year.
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