JMP Securities Starts Blend Labs (BLND) at Market Outperform

JMP Securities analyst Aaron Kimson initiates coverage on Blend Labs (NYSE: BLND) with a Market Outperform rating and a price target of $7.00.

THe analyst comments "We like Blend for several reasons, including: 1) we believe the company is poised to benefit from interest rate cuts and an eventual bounce-back in demand for mortgage originations, refinances, and home equity lines of credit; 2) from a technology perspective, we believe the company’s mortgage software solution is best of breed, and in solving for the most complex type of consumer loan first, the company has the right to win a disproportionate share of additional consumer banking use cases, such as auto, card, personal loans, and deposit account opening over time; 3) we continue to view banks, credit unions, and independent mortgage banks (IMBs) as an attractive end market, with Blend most recently estimating its current addressable market opportunity for consumer use cases to be ~$9.9B; 4) we believe Blend’s initial focus on the largest FIs will allow the company to move down-market effectively; and 5) we think the financial model is set up attractively, with the company reporting total RPO of $107.4M as of 3Q24, up 82% y/y, and expecting to realize approximately half of that as revenue over the next 12 months, revenue continuing to accelerate in our model in 2025, and our expectation for the company to reach free cash flow breakeven in 1H25."

For an analyst ratings summary and ratings history on Blend Labs click here. For more ratings news on Blend Labs click here.

Shares of Blend Labs closed at $5.04 yesterday.

You May Also Be Interested In

• Stripe, Advent In Talks To Buy Paypal - WSJ
• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating
• Phillips 66, Marathon Merger Talks Collapsed - Semafor