Open Lending price target lowered to $5 from $6 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Open Lending to $5 from $6 and keeps an Equal Weight rating on the shares. An adverse $6.7M profit share impact “came as a surprise in the quarter,” particularly given some of the delinquency improvement observed across other lenders, the analyst tells investors. The firm is lowering its FY24 revenue and adjusted EBITDA estimates by 7% and 18%, respectively, citing ongoing and likely pending pressure on profit share and a more measured pace of improvement in credit union demand, the analyst added in a post-earnings recap.