11:30 AM EST, 01/21/2025 (MT Newswires) -- Online real estate companies Zillow Group ( ZG ) , Redfin (RDFN) and Opendoor Technologies ( OPEN ) will likely deliver higher-than-expected Q4 results but are still facing a challenging market, BofA Securities said in a note on Tuesday.

Zillow ( ZG ) is expected to beat both Q4 revenue and earnings before interest, taxes, depreciation and amortization, supported by enhanced markets and growth initiatives but faces downside risk in Q1 due to affordability challenges and tough year-over-year comparisons in February, BofA said.

Redfin's Q4 revenue will likely exceed estimates driven by agent additions but faces challenges with agent productivity and elevated marketing costs that weigh on margins. The company's Q4 Ebitda is also expected to exceed consensus estimates, according to BofA.

Opendoor ( OPEN ) is also estimated to beat Q4 results but faces risks for Q1 guidance because of market compression, according to the note.

"We think persistently high home prices and inventory well below historic averages could pressure home sales in the critical spring selling season and beyond, impacting H1 industry growth," BofA said.

The firm raised its price objective on Zillow ( ZG ) to $81 from $68 and lowered Redfin and Opendoor ( OPEN ) to $7.75 and $1.30 from $8.15 and $1.60, respectively.

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