KeyBanc analyst Josh Beck noted that rates on the 10-year fell below 1% before quickly expanding by ~2%, which coincided with a dramatic digital adoption surge, triggering a rapid rise and subsequent fall for high-growth, long-duration tech assets. 

He noticed rising capital costs may lead to a strategic re-evaluation towards what they refer to as "Lean Growth," a new era featuring a more balanced approach across growth and profitability, marking a pivot from a heavier growth bias (both organic and M&A) in prior years. 

He ran a profitability path deep dive assessing duration to 20% operating margins over ~3-4 years to better evaluate the implications of a Lean Growth era. He ran an analysis on net cash coverage (~20% of market cap). 

He also re-based his "LT rule of 40" DCF analysis (~50 on average) to contemplate higher rates (LDD WACC) and refined SBC-related expenses (mid-teens), which generally moves price targets lower across most of the group. 

He also adjusted estimates for BTRS Holdings Inc (NASDAQ:BTRS), Blend Labs, and VTEX. 

Price Action: BLND shares traded higher by 6.57% at $2.88 on the last check Thursday.

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