LPRO - JMP cuts PT on Open Lending reiterates Market Outperform rating

July, 13 2022 11:31 AM Open Lending Corporation

JMP Securities on Wednesday slashed its price target on Open Lending ( NASDAQ: LPRO ) to $17 from $28 as it lowered its target multiple of EV/2023E EBITDA to 12.5x from 20x.
This reduction is due to broad-based multiple contraction among fintech and financial services stocks since May.
The new PT implies potential upside of 72.6% to LPRO's last close.
JMP reiterated LPRO's Market Outperform rating, in-line with bullish sell-side ratings (7 Strong Buy, 2 Buy, 2 Hold).
"We believe concerns over recessionary fears broadly, and
consumer credit performance specifically, are appropriately priced into LPRO shares," analyst David Scharf wrote in a note to client.
"... we believe LPRO may benefit from reversal of headwinds unique to the auto finance industry. These include impact of chip shortage on auto inventory and affordability, and increasing auto lending market share enjoyed by credit unions, the key constituency of LPRO," he added.
On the other hand, SA Quant's rating on LPRO is Sell as it scored poorly in valuation and momentum factor grades .
LPRO stock, which dropped as much as 7.4% on Wednesday, has fallen ~60% YTD.

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