FBR Capital Weighs In on Today’s Winner: On Deck Capital Inc (ONDK)

In a research report released today, FBR Capital analyst Bob Ramsey reiterated an Outperform rating on shares of On Deck Capital Inc (NYSE:ONDK), with a price target of $14, after the company announced a new partnership with JPMorgan. As part of the partnership, OnDeck will offer small-dollar loan products for JPMorgan’s small-business customers. On Deck shares reacted to the news, rising 28.75% to $11.60 on heavy volume, making it the top winner today.

Ramsey commented, “We believe that JPM’s decisions to (1) work with an external marketplace lender and (2) choose OnDeck specifically validate OnDeck’s business model and illustrate the significant potential for it to work with banks. We note that OnDeck already has created partnerships/alliances with financial institutions (BBVA, Jefferies) and nonbank partners (notably Intuit/QuickBooks). While terms are still being finalized, this likely continues ONDK’s strategy to migrate up-market in terms of credit, service bankable customers, and offer “lending as a service” to partners. We consider ONDK’s strategic partnerships with firms like JP Morgan to be a key differentiator and part of its advantage over newer entrants.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Bob Ramsey has a total average return of -1.1% and a 55.2% success rate. Ramsey has a 8.6% average return when recommending ONDK, and is ranked #2687 out of 3644 analysts.

Out of the 11 analysts polled by TipRanks, 8 rate On Deck Capital stock a Buy, 2 rate the stock a Hold and 1 recommends a Sell. With a return potential of 36%, the stock’s consensus target price stands at $16.30.

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