BofA double downgrades MeridianLink on ‘higher-for-longer’ rates

BofA downgraded MeridianLink (MLNK) to Underperform from Buy with a price target of $18, down from $28. The company has built an attractive loan origination platform for its target credit union end-market. but expectations of “higher-for-longer” interest rates likely will push out its revenue growth recovery story until 2026, the analyst tells investors in a research note. The firm says MeridianLink’s revenue model is directly tied to how many mortgage and consumer loan volumes are processed through it. As such, lower volumes will equate to less revenue growth, contends BofA. It believes the shares could lag other vertical software peers until a revenue growth recovery is fully visible.