As previously reported, Morgan Stanley analyst James Faucette downgraded GreenSky to Equal Weight from Overweight and lowered his price target for the shares to $10 from $28. The company's September quarter results and initial 2019 outlook indicate that passing on increased pricing is leading merchants to change behavior and not absorb all of the increased origination fees. In turn, merchants are pushing the price increases onto consumers in the form of higher interest rates on loans, which impacts GreenSky's P&L, said Faucette, who now believes his assumption of better take rates in a rising interest rate environment has proven too optimistic.