BTIG Remains Neutral on On Deck Capital (ONDK); Says Certain Q3 Metrics Alleviate Some Fears
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BTIG reaffirms its Neutral rating on On Deck Capital (NYSE: ONDK) following Q3 results and outlook posted earlier Thursday.
The firm commented,
With its share price hovering around book value, On Deck Capital (ONDK) needed to check off a couple of items with the 3Q16 report it released this morning to shake off the short sellers who have continued circling the name and to create a basis for a fuller valuation, in our view. Perhaps at the top of that list was for ONDK to post strong growth in loan originations and thereby remind investors that the company has the kind of high growth rate that typically commands a healthy multiple of cash flow.
Additionally, ONDK needed to demonstrate that credit remained benign, a more significant consideration since management a couple of quarters ago adapted to a more challenging funding environment by de-emphasizing its marketplace platform such that it retains more of the loans it originates on its balance sheet, the firm noted.
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