With LendingClub Corp (NYSE:LC) preparing to its annual shareholder meeting on June 28, FBR analyst Bob Ramsey weighs in with a few insights. The analyst maintained a Market Perform rating on the stock, with a $4.00 price target, which represents a potential downside of 17% from where the stock is currently trading.

Ramsey noted, “Recent data points continue to indicate falling loan demand from both institutional and retail investors and uncertainty about LC’s near-term outlook. Of note, LC has begun buying its own loans and froze certain redemptions from its LC Advisors platform, following the extension of time permitted for loans to fund to 30 days. LC’s former CEO also sold 14% (1.2M shares) of his stake earlier this month, reducing the odds of a favorable outcome from his reported discussions with private equity firms to take LC private.”

“We reduce our origination estimate for 2016 to $8B. Reflecting lower originations and factoring in provision for loans held on balance sheet, we lower our 2016 operating EPS estimate to $0.12 (from $0.15) but are not adjusting our 2017 estimate of $0.20 (which is predicated on $7.8B of originations) until we have better clarity around LendingClub’s outlook,” the analyst added.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Bob Ramsey has a yearly average return of -5.3% and a 48% success rate. Ramsey has a -43.5% average return when recommending LC, and is ranked #3545 out of 3971 analysts.

Out of the 13 analysts polled by TipRanks (in the past 3 months), 1 rate LendingClub stock a Buy, 10 rate the stock a Hold and 2 recommend a Sell. With a return potential of 21%, the stock’s consensus target price stands at $5.82.

LC Chart