Wells Fargo upgrades Blend Labs to Overweight, raises price target to $3.50

As previously reported, Wells Fargo upgraded Blend Labs to Overweight from Equal Weight with a price target of $3.50, up from $1.50. 2023 marked the third straight year of underperformance for software, including outsized impacts to SMID-caps, the firm notes. Regardless of if macro improves in 2024, Wells is expecting some of these forgotten names with company specific catalysts and/or inexpensive valuations to stage a comeback, given potential upside to estimates plus favorably skewed risk/reward.