On Friday, Fathom Holdings Inc. (NASDAQ: FTHM) experienced a revision in its stock outlook as Roth/MKM maintained a Buy rating but reduced the price target to $4.50 from the previous $5.00. The adjustment follows the company's fourth-quarter results, which did not meet expectations.
The firm stated that despite the underwhelming performance in the last quarter, the fiscal year 2024 is showing promising signs of improvement. Initiatives such as producer perks and title joint ventures are anticipated to contribute to an increase in agent numbers and transaction growth.
These efforts are particularly expected to yield results in the second half of 2024 when comparisons become more favorable.
The analyst highlighted that growth in the mortgage and title segments should support Fathom Holdings' profitability, especially if the company's joint ventures are extended into additional states. This expansion is projected to position the company to achieve profitability by the second quarter and sustain it throughout the year 2024.
The firm's strategy to attract and retain higher-producing agents is a key factor in the positive outlook for a rebound in growth by the middle of the year. Despite the downward adjustment, the new price target of $4.50 reflects a continued endorsement of the company's potential for recovery and growth.
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