Ran across this..
Stellantis deal 'significant opportunity' for Open Lending, says Deutsche Bank 07:11
LPRO,STLA
Deutsche Bank analyst Sameer Kalucha says Stellantis (STLA) acquiring auto lender, First Investors Financial Services Group presents a "significant opportunity" for Open Lending (LPRO). The acquisition provides the potential to add an incremental manufacturing customer to Open Lending's two existing customers, with the original number three and four pipeline remaining intact, Kalucha tells investors in a research note. The analyst views the transaction as a "net positive" for Open Lending given the "multiple growth avenues" and keeps a Buy rating on the shares.
Raymond James says buy Open Lending aggressively after Stellantis deal 11:49 LPRO, STLA, SAN Raymond James analyst John Davis reiterates a Strong Buy on Open Lending (LPRO) with a $52 price target after Stellantis (STLA) acquired First Investor Financial Services, a non-bank auto lender, in order to establish the company's U.S. captive finance arm. Open Lending signed First Investor in Q3 of 2020 and if it could replace Santander's (SAN) $7B of run-rate subprime Stellantis volume, it could add an additional 273,000 certs, providing an 80% boost to its earnings power, Davis tells investors in a research note. He believes Open Lending could eventually become the primary originator for the combined company. The analyst says that while Santander's contract doesn't expire until 2023 and "there is still lots of uncertainty," he'd be an "aggressive" buyer of Open Lending shares today. The 5% rally "simply doesn't make sense given the potential upside from Stellantis," writes Davis.
DA Davidson says Stellantis opportunity for Open Lending not 'fait accompli' 12:21 LPRO, STLA After Stellantis (STLA) agreed to buy First Investors Financial Services Group to create a captive lending arm, DA Davidson analyst Peter Heckmann noted that First Investors is an Open Lending client so he thinks the deal could help facilitate an expanded deal for Stellantis to become an OEM captive lending partner. However, he doesn't think this opportunity "is a fait accompli," and suspects a formal deal may take months or years to finalize or it "may not materialize." Still, he is maintaining a Buy
Stellantis initiated with a Buy at Erste Group 08/20 STLA Erste Group analyst Hans Engel initiated coverage of Stellantis with a Buy rating. The company recently raised its revenue and profit forecasts for 2021, says the analyst, who expects the stock to outperform the sector index due to the positive outlook.
LPRO-$
Open Lending Corporation (LPRO) reasonable PE of 160
NasdaqGM - NasdaqGM Real Time Price. Currency in USD
$42.21+0.64 (+1.54%)
As of 10:59AM EDT. Market open.
