DFIN - Open Lending stock falls after Goldman downgrades to Neutral on limited upside

small smiles/iStock via Getty Images Open Lending (LPRO) drops 7.3% after Goldman Sachs analyst Matthew O'Neill downgrades the stock to Neutral from Buy as its recent runup brings risk/reward into balance and implies limited upside potential relative to the other Buy-rated stocks he covers.. He points to LPRO's +123% Y/Y gain vs. the S&P 500 of +35%. "We continue to believe that LPRO has a differtiated growth/margin profile, with several opportunities to drive outsized growth to continue and limited (if any competition)," O'Neill writes in a note to clients. At the same time, he expects investors to focus on LPRO's revenue excluding profit share adjustments, which have lagged Street estimates by 4-5% in each of the past three quarters. "Moving forward, we believe that, all else equal, incremental positive profit share revisions are less likely now than the $13M of negative profit share revisions taken in response to COVID during 1H20," O'Neill

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Open Lending stock falls after Goldman downgrades to Neutral on limited upside