Open Lending price target lowered to $2 from $7 at Needham

Needham lowered the firm’s price target on Open Lending (LPRO) to $2 from $7 and keeps a Buy rating on the shares. The company reported poor Q4 results, drastically missing Street expectations on the top and bottom line due to a sizable negative fair value revision on the profit share revenue stream, the analyst tells investors in a research note, adding that the management did not provide Q1 guidance and announced that Chairman of the Board Jessica Buss will be taking over as CEO effective immediately. The firm adds however that while the quarter was disappointing, Open Lending now has over 40% of its market cap in net cash and the shares trade at just 1.8-times tangible book value.