Blend Labs (BLND) PT Lowered to $4 at Citizens on 'Disappointing' Q2 Guidance

Citizens analyst Aaron Kimson lowered the price target on Blend Labs (NYSE: BLND) to $4.00 (from $5.00) while maintaining a Market Outperform rating.

The analyst commented, "We maintain our Market Outperform rating on Blend Labs though reduce our price target to $4 from $5 after the company reported strong 1Q26 results, with non-GAAP EPS from continuing operations of $0.00 (consensus $0.00), and revenue of $30.8M (consensus $30.0M), up 15% y/y versus flat in 4Q — leaving the stock down 4% in the aftermarket after falling 47% YTD versus a 6% increase for the Russell 3000. Guidance for 2Q was disappointing, with revenue expected to be in the range of $32.0M-$34.0M (consensus $35.3M), up 1-7%, including mortgage banking revenue growth in the range of 4-10% (consensus 11%) and consumer banking revenue growth of (2%)-4% (consensus 12%), and non-GAAP operating income in the range of $5.5M-$6.5M (consensus $6.7M). Economic value per funded loan is expected to decline to $79- $80 in 2Q and is, "primarily driven by increased volume."

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