Pacific Crest Downgrades Yodlee (YDLE) to Sector Weight

Pacific Crest downgraded Yodlee (NASDAQ: YDLE) from Overweight to Sector Weight and removed its price target (prior $19.00). The change follows its agreement to be acquired for $18.88 per share.

Analyst Josh Beck called the deal an indirect positive for positive for LendingClub (NYSE: LC) and On Deck Capital (NYSE: ONDK).

"A potential takeout underscores the strategic value within FinTech and is an indirect positive for LendingClub and On Deck Capital, in our view," said Beck. "While Yodlee and other recent IPOs, like LendingClub and On Deck Capital, have all broken deal price at some point, the 57% premium from Yodlee's IPO price is a positive for the FinTech space, in our view. The rationale behind the potential deal is to combine Yodlee's data and financial applications with Envestnet's wealth management platform for financial advisors with the goal of generating cross-sell opportunities. The potential deal in some ways reminds us of Northwestern Mutual's acquisition of LearnVest in March 2015," said Beck.

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

Shares of Yodlee closed at $12.60 yesterday.

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