Compass Point reiterated a Neutral rating on On Deck Capital (NYSE: ONDK), and cut the price target to $7.50 (from $8.50), following a mostly in-line 4Q earnings report. Adjusted EPS of ($0.02) was in line with consensus. ONDK reported gross revenue of $67.6M, which rose 34% YOY. Management projects 2016 gross revenues of $320-$328M vs. consensus of $339M, and adjusted EBITDA of $10-$14M vs. consensus of $28M.

Analyst Michael Tarkan commented, "We are reiterating our Neutral rating on ONDK but are lowering our price target to $7.50, from $8.50, after the company reported mostly in-line 4Q15 earnings. More importantly, management's outlook for 2016 missed consensus expectations as gain on sale activity moderates and provision, funding, and technology expenses move higher. This is expected to only partially be offset by higher interest income as the company retains more loans. We are lowering our 2016 and 2017 adjusted EPS estimates to $0.05 and $0.15, respectively, from $0.10 and $0.20. Our estimates remain well below consensus of $0.38 and $0.46, respectively (note, we do not currently model a reversal of the DTA). While we see longer-term potential from the JPM and other partnerships, the company's nearterm earnings power remains constrained and competitive and regulatory risks remain elevated."

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Shares of On Deck Capital closed at $8.80 yesterday.