Piper Sandler upgrades Redfin buyout by Rocket Mortgage for $12.5 per share
Investing.com --Piper Sandler upgraded its rating on Redfin Corp to Neutral from Underweight after Rocket Mortgage 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.The acquisition, expected to close between the second and third quarters of 2025, is subject to regulatory approval. The process will include an antitrust review and a shareholder vote. Rocket expects the merger to generate $200 million in cost and re