I believe GreenSky (NASDAQ:GSKY) is wildly overvalued based on four trends that have manifested themselves during 2019. While the stock has performed poorly as a result of the identified trends, I believe problems for GSKY will accelerate during the next two quarters, leading to additional downside for GSKY shares. My current target price is $2.50, representing -65% downside from the current share price.
Strained Key Bank Partnerships
GSKY relies on bank partners to fund and hold the consumer loans on their balance sheets. GSKY is merely the transaction platform that facilitates the loans.