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Oportun Financial (NASDAQ:OPRT) stock took a beating, after JMP downgraded the company to Market Perform from Market Outperform, citing challenges hampering the firm's path to profitability.
Shares in the company were down 13.64%.
JMP said its prior rating was based entirely on shares trading at a significant discount to book value.
"Still, JMP concedes that such a discount is only relevant if it is realizable, and in the absence of either a sale or winddown of the loan portfolio, it is looking at a business that continues to deliver net losses and underperform peers with respect to other key benchmarks," the analysts at JMP added.
The downgrade comes a day after Jefferies cut the consumer finance company to Hold, awaiting leverage reduction and improving credit.
Earlier in the week, the firm beat its Q4 top line estimates, but missed on its bottom line.
SA quant also rates the company at Hold.