Redfin Corp., a digital real estate brokerage, lost its last Wall Street bull on December 21st of last year.

Naved Khan, an analyst of Truist Securities, downgraded Redfin to hold from buy on growth concerns. From Bloomberg’s data, since the company’s initial public offering in 2017, this is the first time that the stock had no buy-equivalent ratings from analysts. The stock’s price target was slashed from $10 to $5.50 due to Khan’s cut.

In early November, Khan noted that the stock had hit its lows, but it remained down 87% for the year. Shares of the company rose 3.3% at 10:49 a.m. New York time on Wednesday amid a rally in the stock market as a whole.

As a result of the stock moving up, Khan believes that the liquidity concerns that were unwarranted have been dispelled. According to the analyst, near-term catalysts are lacking because the company will continue to face housing slowdown headwinds, especially in the first half of 2023.

The number of existing US homes sold declined in November for the 10th consecutive month as rising mortgage interest rates dampened the market.

Despite macro headwinds in 2023, Khan noted that a number of steps have been taken by Redfin to improve profitability, including reducing headcount and eliminating homebuyer refunds. However, unfavorable changes in the operating environment such as rates and demand could still adversely affect execution.

Data compiled by Bloomberg shows that no analysts have buy-equivalent ratings on the stock, but more than a dozen have hold ratings and a few have sell ratings.

Khan also downgraded Opendoor Technologies Inc., Redfin’s peer, to hold from buy, noting the remnant inventory drag, rapid correction in home values as a result of high mortgage rates, and slowed demand will pose incremental risks in the first half of 2023 performance.