Santander Consumer USA (SC) Stock Falling Today After Analyst Downgrades

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.

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"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 Chart SC data by YCharts

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