Compass Point Upgrades On Deck Capital (ONDK) to Neutral

Compass Point upgraded On Deck Capital (NYSE: ONDK) from Sell to Neutral with a price target of $8.50.

Analyst Michael Tarkan commented, "We are upgrading ONDK to Neutral, from Sell, but are maintaining our $8.50 price target. Our upgrade is driven by two primary reasons: (1) valuation: shares now reflect more reasonable risk/reward at 1.6x TBV; and (2) partnership potential: the JPM white-label technology agreement and potential for additional partnerships open up an additional revenue stream and de-risk the company's earnings profile. This should help provide insulation from an increasingly challenging lending environment. We also expect disruption from the wind-down of SAB Capital Management, the company's 6th largest holder, is largely complete at this point. Key concerns around competition, regulation, credit, and yields remain, but at current levels upside/downside is more balanced."

For an analyst ratings summary and ratings history on On Deck Capital click here. For more ratings news on On Deck Capital click here.

Shares of On Deck Capital closed at $7.33 yesterday.

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