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Investing.com - B.Riley initiated coverage on Real Brokerage Inc. (NASDAQ:REAX) with a buy rating and a $7.00 price target on Wednesday. For deeper insights into Real Brokerage’s financial health and detailed valuation metrics, InvestingPro subscribers can access comprehensive analysis and exclusive financial indicators.
The research firm cited Real Brokerage’s disruptive approach to the residential real estate segment through its unique brokerage platform as a key factor in the positive outlook.
B.Riley expects the company to maintain strong agent growth, driven by attractive earnings on transactions and referrals, which should result in continued robust transaction growth and market share gains.
The firm anticipates that strength in Real Brokerage’s core business will be complemented by expansion in ancillary services including title and mortgage offerings, creating additional revenue streams.
B.Riley noted that fixed-cost leverage combined with an increasing mix of higher-margin ancillary revenue should drive EBITDA margins higher over time, with the stock currently trading at 11.6x 2026 estimated EBITDA.
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