
LPRO Stock Forecast & Price Target
LPRO Analyst Ratings
Bulls say
Open Lending Corp reported a total revenue increase of 3% year-over-year to $24.2 million in the third quarter, surpassing forecasts by $2.3 million, indicating strong performance compared to both internal projections and market consensus. The company's adjusted EBITDA also grew by 22% year-over-year, reaching $5.6 million, bolstered by a positive adjustment in previously recognized profit-sharing fee revenue, which highlights operational efficiency and revenue recognition improvements. Additionally, the success of the Lenders Protection Program, aimed at offering favorable loan terms to near-prime and non-prime borrowers while mitigating risk for lenders, underscores Open Lending's strategic alignment with market needs, potentially enhancing customer relationships and increasing revenue volumes.
Bears say
Open Lending Corp has experienced a notable decline in its total certified loans, which fell 13% year-over-year to 23.9K, highlighting challenges in the lending environment. The company is also facing significant headwinds due to stricter underwriting standards and increased pricing pressure, resulting in a 57% year-over-year decrease in certified loans from relationships with captive lenders of auto manufacturers. Additionally, rising auto loan delinquencies and defaults have led to a downward revision of profit-sharing fee revenue expectations for 2023 and early 2024, further exacerbating concerns about the company's revenue and earnings outlook.
This aggregate rating is based on analysts' research of Open Lending Corp and is not a guaranteed prediction by Public.com or investment advice.
LPRO Analyst Forecast & Price Prediction
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