BLND - Blend Labs stock dips to new all-time low as Wells Fargo cuts to Equal Weight on poor 2022 guidance

Blend Labs (NYSE:BLND) shares are falling 17% in premarket trading Friday to new all-time lows, as Wells Fargo analyst Michael Turrin downgraded the fintech to Equal Weight on the basis of disappointing 2022 guidance.  The bearish coverage comes after Blend Labs (BLND) on Thursday evening announced worse-than-expected fourth-quarter results.  Turrin specifically pointed to the company's poor outlook for mortgage volumes, "which applies pressure to revenue growth given this is a usage-based business model (revenue collected upon transaction completion)," he wrote in a note to clients Friday.  In turn, the analyst lowered his 2022 revenue estimate to $241M from $365M in the prior view. Sees full-year gross profit at $109M, down from $172M in the previous forecast, according to the note. Price target cut to $5 per share from $11, implying 12.2% downside from Thursday's close. Wells Fargo's PT is derived using calendar year 2023 estimates of 3.5x enterprise value/sales and 6x enterprise value/gross profit.

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Blend Labs stock dips to new all-time low as Wells Fargo cuts to Equal Weight on poor 2022 guidance