JMP maintains Blend Labs stock Market Outperform rating

Published 19/05/2025, 10:02
JMP maintains Blend Labs stock Market Outperform rating

On Monday, JMP analysts, including Aaron Kimson, reiterated their Market Outperform rating for Blend Labs (NYSE: BLND), with a steady price target of $7.00, representing a significant upside from the current price of $3.66. According to InvestingPro data, two analysts have recently revised their earnings estimates upward for the upcoming period. Kimson confirmed the firm’s non-GAAP EPS estimate for 2025 at $0.05, aligned with the consensus, based on projected revenues from continuing operations of $135.1 million, which represents a year-over-year increase of 17%. This forecast slightly exceeds the consensus revenue estimate of $131.2 million for the same period. The company’s solid financial position is supported by a healthy current ratio of 2.41 and more cash than debt on its balance sheet.

Looking ahead to 2026, JMP analysts have also kept their non-GAAP EPS estimate at $0.14, which surpasses the consensus of $0.12. They anticipate revenues from continuing operations to reach $176.8 million, marking a significant 31% growth year-over-year, and outpacing the consensus projection of $164.5 million.

For the year 2027, the firm’s outlook remains unchanged, with a non-GAAP EPS estimate of $0.20. JMP analysts expect Blend Labs to continue its upward trajectory, with projected revenues from continuing operations climbing to $213.1 million, a 21% increase year-over-year.

These estimates by JMP reflect a positive view on Blend Labs’ financial performance over the next few years. The consistent ratings and targets suggest that the analysts see a steady growth pattern for the company, supported by solid revenue projections. With a market capitalization of $946 million and an overall FAIR financial health score from InvestingPro, investors can access 8 additional key insights and a comprehensive Pro Research Report to make more informed investment decisions.

In other recent news, Blend Labs reported its Q1 2025 earnings, revealing a loss of $0.01 per share, missing the projected gain of $0.01. The company’s revenue also fell short, coming in at $26.77 million against an expected $43.18 million. Despite these misses, Blend Labs experienced a 12% year-over-year growth in platform revenue, reaching $26.8 million, and achieved a record free cash flow of $15.5 million. The company also maintained a strong non-GAAP gross margin of 73%, up from 68% the previous year. Meanwhile, Blend Labs is pursuing strategic changes, including a transition to a software-first model and the potential sale of its title insurance business. These initiatives align with the company’s goal to focus on its core software strengths. Furthermore, Blend Labs provided optimistic guidance for the upcoming quarters, projecting Q2 platform revenue between $30.5 million and $32.5 million. In related developments, the acquisition of Mr. Cooper by Rocket was highlighted as a significant industry event, potentially impacting Blend Labs’ market trajectory.

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