BTIG analyst Giuliano Bologna upgraded On Deck Capital (ONDK) to Buy from Neutral with a $4.25 price target.

The stock closed yesterday down 23%, or 92c, to $3.04.

The company's "soft" Q2 results is offset by the $50M share repurchase plan and desire to pursue a bank charter, Bologna tells investors in a research note. He believes the sharp decline yesterday in On Deck's share price post-earnings is "overly punitive and creates an attractive entry point."

The company should begin to see margin and earnings improvement over the next few quarters, says Bologna.