NEW YORK (TheStreet) -- Shares of Santander Consumer USA Holdings Inc. (SC) are down 1.68% to $17.00 in late morning trading after the company was downgraded at Bank of America/Merrill Lynch and Wells Fargo.
Bank of America/Merrill Lynch downgraded the company to "neutral" from "buy" and set a price target of $19 for the specialized consumer finance company, down from its previous mark of $24.
The firm said that poor credit results are cutting into earnings.
"We are Neutral on the stock, given poor visibility into NT credit trends, as provision levels and loss rates are coming in higher than expected," said Bank of America/Merrill Lynch analyst Kenneth Bruce.
Wells Fargo downgraded the company to "market perform" from "outperform" and set a valuation range of $17 to $19 down from $21 to 23.
The firm said the company is being hurt by an uncertain credit environment.
"We believe the risk/reward in shares is balanced, given the challenging economic and competitive environment, which may adversely impact credit-related costs and risk-adjusted returns," analysts at Wells Fargo said.SC data by YCharts