Wall Street sees a frozen housing market as the death knell for iBuying, but EMJ Capital founder Eric Jackson views it as the ultimate catalyst for Opendoor Technologies Inc. (NASDAQ:OPEN).
With shares trading at $4.31, Jackson is maintaining a staggering $82 price target, representing an 1,802.55% upside, arguing that the market is mispricing a radical corporate transformation.
A ‘Messy’ But Profitable Path
Jackson asserts that the current 6.33% mortgage rate environment hasn’t destroyed housing demand; it has merely delayed it. “He is describing deferred demand. Not destroyed demand. Deferred,” Jackson wrote in his Substack post, citing his sources from Main Street.
When rates eventually drop, Opendoor’s newly rebuilt infrastructure will be perfectly positioned to capture the coiled volume.
Acknowledging the stock’s recent volatility, massive headline losses, and dilution, Jackson remains unfazed by the bearish sentiment.
“Turnarounds are messy. That’s why they’re cheap,” Jackson stated, comparing Opendoor’s current state to Carvana Co.‘s (NYSE:CVNA) historic rebound. “The straight line was always a lie.”
This post was originally published here
