Jefferies downgrades Oportun to 'hold' on earnings pressure

Oportun Financial

14/03/2024 12:57

** Jefferies downgrades fintech company Oportun Financial
 OPRT.O  to "hold" from "buy"; lowers PT to $3.50 from $9, a
4.1% downside to last close
    ** Brokerage cites earnings pressure which it believes is
reflected in the stock price
    ** Jefferies believes if the large losses do not improve
dramatically, balance sheet constraints to growth and
operational flexibility may develop
    ** Loan covenants and balance sheet leverage may be becoming
a constraint to the business, thereby limiting earnings
potential - Brokerage
    ** Two of five brokerages rate the stock "buy" or higher and
three "hold"; their median PT is $5.25 - LSEG data
    ** As of last close, stock down 6.6% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))