In a report released today, Aaron Kimson from JMP Securities maintained a Buy rating on Blend Labs (BLND – Research Report), with a price target of $7.00.
Aaron Kimson has given his Buy rating due to a combination of factors that suggest potential growth and resilience for Blend Labs despite recent challenges. The acquisition of Mr. Cooper Group by Rocket Companies, while initially perceived negatively due to competitive concerns, also presents opportunities. Mr. Cooper, Blend’s largest customer, has recently extended its contractual agreement with Blend, indicating continued revenue flow and a commitment to the relationship.
Additionally, while Mr. Cooper contributes significantly to Blend’s revenue, a substantial portion comes from lower-margin business, suggesting that Blend’s core platform, which boasts higher margins, remains robust. The recent strategic moves by Blend to simplify its operations, such as partnerships and offloading certain business segments, align with its focus on strengthening its core offerings. Furthermore, potential regulatory scrutiny of the Rocket and Mr. Cooper deal could delay competitive pressures, providing Blend with more time to adapt and strategize. Overall, these factors contribute to a positive outlook for Blend Labs, supporting the Buy rating.
Based on the recent corporate insider activity of 73 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.