Open Lending downgraded to Hold from Buy at Needham

Needham downgraded Open Lending to Hold from Buy without a price target. The auto lending market remains choppy, and could see further disruptions due to ongoing auto credit concerns, falling used car prices, and elevated interest rates for auto loans, the analyst tells investors in a research note. In addition, the firm believes the recent ransomware attack at CDK Global will result in weaker loan cert volumes in Q2 and the Q3 guidance, which would be another fundamental drag on the shares. Needham is concerned that there is a downward bias to Street estimates, and believes it will take several rate cuts from the Federal Reserve and a better auto loan credit outlook for Open Lending to return to growth.