On Deck Capital (NYSE:ONDK) declines 6.2% in premarket trading after Morgan Stanley analyst James Faucette downgraded the stock to underweight from equal-weight, adding ONDK will probably lag its peers in the payment industry, Bloomberg reports.
The company's efforts to scale up the "OnDeck-as-a-Service" product will likely take a long time, he wrote; further, ONDK also has little to no exposure to industry tailwinds such as pricing and expanding into B2B payments, he said.
Separately, Faucette cut his rating on LendingClub (NYSE:LC) to equal-weight from overweight, explaining bull thesis will take longer to realize as FTC probe may scare away new investors. LC -4.3% in premarket trading.
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