Riskified price target lowered to $4.50 from $4.75 at UBS

UBS lowered the firm’s price target on Riskified (RSKD) to $4.50 from $4.75 and keeps a Neutral rating on the shares. While Riskified announced that Gross Merchandise Volume accelerated to 17% in Q3 from 13% in Q2, the company announced the loss of a large merchant int he Home category at the end of October with the associated revenue loss being $23M on a pro forma full-year basis, the analyst tells investors in a research note. The combination of brand name enterprise clients, low penetration for chargeback guarantee solutions, and a large eCommerce end-market provides attractive tailwinds, but UBS sees a more balanced risk-reward for shares in the near- to medium-term, particularly in light of the large merchant loss in October and fraud event in Q2.