DA Davidson maintains Buy on Open Lending, keeps $8 target

Published 17/03/2025, 15:40
DA Davidson maintains Buy on Open Lending, keeps $8 target

On Monday, Open Lending (NASDAQ:LPRO) shares experienced a shift in schedule as the company announced the postponement of its fourth-quarter earnings release for the year 2024. The stock, currently trading at $3.94 and near its 52-week low of $4.24, has seen challenging market conditions with a 26% decline over the past six months. Initially set for Monday afternoon, the delay has arisen due to the company’s need for additional time to finalize its financial statements for the year.

In response to this development, DA Davidson analyst Peter Heckmann reaffirmed the firm’s Buy rating on Open Lending’s stock, maintaining the established $8.00 price target. According to InvestingPro data, analyst targets range from $5 to $10, suggesting potential upside from current levels. The analyst emphasized the company’s intent to reschedule the earnings conference call and to file the Form 10-K for the year 2024 as soon as possible. Open Lending has committed to completing these actions no later than April 1st.

The company’s decision to delay the earnings report has been communicated clearly, with assurances provided that the necessary financial documents will be disclosed in a timely manner. With a market capitalization of $473 million and an overall Financial Health score of FAIR on InvestingPro, which offers comprehensive analysis through its Pro Research Reports covering 1,400+ US stocks, Open Lending has not yet announced a new date for the earnings release but has expressed its commitment to adhere to the deadline of April 1st for the submission of its annual report.

Investors and stakeholders are advised to await the forthcoming rescheduled conference call and the filing of the Form 10-K, which will offer a comprehensive view of Open Lending’s financial performance for the past year. The company’s assurance of prompt action suggests a focus on transparency and regulatory compliance.

The reaffirmation of the Buy rating and price target by DA Davidson indicates a continued positive outlook for Open Lending’s stock, despite the current delay in reporting financial results. Stakeholders are encouraged to monitor the company’s announcements for updates on the rescheduled earnings release and conference call.

In other recent news, Needham analysts have upgraded Open Lending’s stock rating from Hold to Buy, with a new price target set at $7.00. This decision comes amid signs of stabilization and modest improvement in the auto lending market, which has increased the firm’s confidence in Open Lending’s business outlook. Analysts at Needham expect loan certification volumes for Open Lending to improve throughout the fiscal year 2025, based on feedback from users of the company’s core product. The upgrade follows a period where Open Lending’s shares declined by approximately 8% since a previous downgrade by Needham on July 22, 2024. Despite this decline, Needham sees the current valuation as an attractive opportunity for investors, noting that the company trades at an enterprise value to FY26 EBITDA multiple of around 10 times. Additionally, net cash comprises over 15% of Open Lending’s market capitalization. The revised price target is based on an enterprise value to FY26 EBITDA multiple of 13 times, reflecting the analysts’ positive outlook on the company’s financials and market conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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