William Blair analyst Dylan Becker has reiterated their neutral stance on BLND stock, giving a Hold rating on October 27.
Dylan Becker’s decision to rate Blend Labs with a Hold is based on a myriad of factors, primarily concerning the mortgage market’s uncertainty. Despite Blend Labs’ commendable performance in the third quarter, aligning with management’s expectations, industry challenges continue to pose a threat to the company’s mortgage origination business. This, in turn, has somewhat dampened the impact of the firm’s successful execution and monetization initiatives.
Becker acknowledges Blend Labs’ robust diversification into consumer lending, with promising signs of business momentum. The company is also managing its cost structure effectively, moving towards operational breakeven by late 2024, and demonstrating growth potential through a significant increase in its deal pipeline. However, the ongoing uncertainties in the mortgage market for the upcoming quarters form the crux of Becker’s Hold rating for the company, even as it continues to diversify its revenue base and develops new value-supporting tools across its core mortgage and emerging consumer platforms.
In another report released on October 27, KBW also assigned a Hold rating to the stock with a $1.55 price target.
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Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BLND in relation to earlier this year.
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Blend Labs (BLND) Company Description:
Blend Labs Inc is a cloud based platform. It supports and simplifies applications for mortgages, consumer loans, and deposit accounts.
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