Wealthfront Likely to See 'Volatile' Fiscal Q4, RBC Says

MT Newswires Live
Mar 09

Wealthfront (WLTH) is likely to see a "volatile" fiscal Q4 related to interest rates and mix shifts in its business model, RBC Capital Markets said in a Sunday note.

Fiscal Q4 will be the company's second quarter as a listed firm and RBC said the quarter follows the negative reaction in fiscal Q3 as net deposits declined to negative levels in December. According to the brokerage firm, investors are still calibrating the nuances associated with Wealthfront's business model.

RBC lowered its estimate for the company's fiscal Q4 platform assets to about $94.2 billion, from $95.5 billion previously, and now projects net deposits to be negative $213 million, compared with its previous forecast of $1.8 billion.

RBC also cut its price target on Wealthfront to $14 from $17, with an outperform rating.

Price: 8.43, Change: -0.06, Percent Change: -0.71

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