BLND - Blend Labs stock lands Neutral rating from Compass Point as mortgage market falters

Compass Point analyst Jason Weaver on Wednesday has started coverage on financial services platform Blend Labs (NYSE:BLND) with a Neutral rating. Price target of $4.20 implies nearly 30% upside from Tuesday's close. Shares of BLND are drifting up around 2% intraday. Amid rising interest rates, "a contracting mortgage market will present the company with substantial difficulty to grow revenues over the near-term, even considering repositioning efforts," Weaver wrote in a note. Looking at its first-quarter results, Blend Labs (BLND) said it's expecting a "more pronounced decline of approximately 41% in 2022 mortgage origination volumes against 2021, compared to a 35% decline predicted at the end of March," said Nima Ghamsari, the head of fintech. Meanwhile, Weaver's Neutral rating agrees with that of Wall Street Analysts (1 Strong Buy, 1 Buy, 7 Hold). Previously, (May 17) Coatue Management exited its position in Blend Labs.

For further details see:

Blend Labs stock lands Neutral rating from Compass Point, as mortgage market falters