Canaccord Genuity Upgrades Blend Labs (BLND) to Buy

Canaccord Genuity analyst Joseph Vafi upgraded Blend Labs (NYSE: BLND) from Hold to Buy with a price target of $4.75 (from $3.00).

The analyst comments: "With risk/reward looking much better and what could be the beginnings of a turn in the mortgage market we are upping our rating from Hold to BUY. While it might still be too early to call a sustainable turn in mortgage volumes, the setup is promising. Acknowledging that we could be early here, we also underscore what is a materially expanded mortgage service offering from Blend versus before the market downturn. This, along with a cleaned-up balance sheet and the strong likelihood of reaching non-GAAP profitability in Q4, bides time even if a real uptick in mortgage volumes takes a while. We have fine-tuned up our estimates; and with what we view as reduced risk to the operating model, we have increased our target multiple. Our new price target of $4.75 is equivalent to 6.1x our new 2025 EV/Sales estimate, an increase from our previous multiple of 3.6x."

For an analyst ratings summary and ratings history on Blend Labs click here. For more ratings news on Blend Labs click here.

Shares of Blend Labs closed at $3.30 yesterday.

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