William Blair Sticks with Buy as Blend Labs (BLND) Sharpens SaaS Focus

Blend Labs Inc. (NYSE:BLND) is one of the 10 best debt-free IT penny stocks to buy. On May 28, William Blair analyst Dylan Becker reiterated a Buy rating on Blend Labs (BLND), though he didn’t assign a price target to the stock. In Becker’s view, the company’s recent decision to divest its Title365 business marks an important strategic change. By moving away from the more services-heavy segment, Blend is now better positioned to operate as a focused vertical SaaS company.

William Blair Sticks with Buy as Blend Labs (BLND) Sharpens SaaS Focus

A customer using the latest mobile banking app, taking control of their financial future.

Becker notes that this step should have a positive impact on Blend’s financial profile, particularly by improving gross margins and bringing them more in line with those of software-first businesses. More importantly, the move allows management to sharpen its focus on the core business—developing digital tools for banking products like mortgages and consumer loans.

With this narrowed focus, Becker expects Blend to strengthen its position in the market over time, particularly as it looks to deliver improved customer experiences in the financial services space. While broader mortgage market remains challenging, he sees potential for the company to unlock improved profitability and generate stronger revenue growth from 2025 onwards.

Blend Labs Inc. (NYSE:BLND) offers a cloud-based banking software platform that simplifies and automates consumer banking experiences, including mortgage applications, personal loans, and deposit account openings.

While we acknowledge the potential of BLND as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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