Open Lending price target lowered to $4 from $8 at DA Davidson

DA Davidson lowered the firm’s price target on Open Lending (LPRO) to $4 from $8 and keeps a Buy rating on the shares. The company’s Q4 results included an $81M reversal to the previously recognized profit-sharing fee revenue, which drove overall Q4 and 2024 results materially below the firm’s prior forecasts, the analyst tells investors in a research note. Based on the Q4 update, the current environment, plus the outlook for new tariffs on imported autos and auto parts, the firm has lowered its 2025 and 2026 forecasts, DA Davidson adds, cutting its FY25 EBITDA view to $31.1M from $59.9M and its FY26 view to $55.2M from $76.1M.