Analysts Nothing ever seems to change for the stock.
National Bank analyst Richard Tse wrote in a note that the results were roughly in line with expectations.
“While Real Matters saw solid performance in the much smaller U.S. Title and Canada segments, the core U.S. Appraisal segment is still lagging due to the continued soft macro environment,” he wrote. “While we see pent-up demand, especially in U.S. Title, the challenging rate backdrop still constrains an inflection in volumes.“
Mr. Tse maintained his “sector perform” (hold) rating and $7 price target on the stock.
“Longer term, we remain constructive on Real Matters’ positioning as the company continues to onboard new clients, as it launched on six new clients including a Tier 1 lender in U.S. Title and a Top 15 mortgage lender in U.S. Appraisal during the quarter,” he wrote. “These developments, combined with available capacity and disciplined cost management, position Real Matters well for operating leverage when volumes recover.”
Added Mr. Tse: “All in, visibility into any kind of normalization remains uncertain; as such, we see a balanced risk-to-reward profile for Real Matters.”
Canaccord Genuity analyst Robert Young lowered his price target to $8 from $10 after the earnings and kept his “buy” recommendation.
“Real Matters continued to execute well on cost containment and market share gains. However, uncertainty on the direction of the US 30-year mortgage rate (6.36% - Mortgage News Daily) now features more prominently,” he wrote.
“Considering a cloudier rate outlook, we have reduced our FQ1 and F26 estimates.”