Blend Labs, Inc. (BLND) stock plummeted 5.11% in Monday's pre-market trading session, following an analyst's price target cut on the company due to concerns over its growth prospects.

Keefe Bruyette analyst Ryan Tomasello lowered the firm's price target on Blend Labs to $3.50 from $3.85, while maintaining a "Market Perform" rating on the shares. The analyst's move came after the company reported its full-year results, which included revenue in line with expectations but slightly larger-than-expected losses per share.

According to Tomasello's report, the analysts covering Blend Labs have now lowered their revenue estimates for 2025, while significantly increasing their loss per share expectations. This suggests a mixed view on the stock, with concerns over the company's ability to maintain its growth trajectory and improve profitability.