Needham & Company Downgrades On Deck Capital (ONDK) to Hold
Get Alerts ONDK Hot Sheet
Rating Summary:
3 Buy, 17 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Join SI Premium – FREE
Needham & Company downgraded On Deck Capital (NYSE: ONDK) from Buy to Hold.
Analyst Mayank Tandon commented, "We are downgrading ONDK to a HOLD from a BUY following a disappointing 1Q, sharp reduction in guidance, and increased uncertainty on the path to profitability for the company. ONDK missed 1Q estimates on slower growth in loan originations, with a lower mix of Marketplace loan sales weighing disproportionately on EBITDA losses. These same factors combined with higher funding and provision costs are anticipated to weigh on the balance of FY16 and are the reasons for the sharp reduction in FY16 guidance. Accordingly, we are cutting our FY16 and FY17 estimates. Although we believe the SMB online lending space represents a large and underserved market opportunity, the lack of clarity on the sustainable growth prospects and margin levels for ONDK leads us downgrade the shares to a Hold."
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 $8.30 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Citi Downgrades UBS AG (UBSG:SW) (UBS) to Neutral
- AGNC Investment Corp (AGNC) PT Lowered to $10.25 at Jones Trading
- CLSA Downgrades Denso Corp. (6902:JP) (DNZOY) to Sell (5)
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, DowngradesRelated Entities
Needham & CompanySign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!