UBS Upgrades MeridianLink (MLNK) to Neutral

UBS analyst Nik Cremo upgraded MeridianLink (NYSE: MLNK) from Sell to Neutral with a price target of $25.50 (from $18.00).

The analyst comments: "We upgrade our rating to Neutral on the back of more consistent execution on the top and bottom line, a more favorable lending environment on the horizon from additional rate cuts in 2025, and increasing financial institution customer confidence on the mid-term economic outlook. Previously, we were more concerned about the company's cost management execution and the general macro outlook for consumer lending (~78% of 2024E revenue). However, consistent margin guidance beats over the last five quarters, paired with a more sustained acceleration of the consumer lending business (ex. mortgage) into the HSD range over the last two quarters increases our confidence in our estimates in the near and medium-term. We note MeridianLink posted a ~6% Q3 adjusted EBITDA beat (vs. Street), despite in-line revenue driven by continued cost execution that led to adjusted EBITDA margins expanding ~300bps YoY to ~42%."

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

Shares of MeridianLink closed at $24.09 yesterday.

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