FBR analyst Bob Ramsey is out with a research report on LendingClub Corp (NYSE:LC) and ultimately remains sidelined on the fintech firm following an analysis of its credit quality.

Nonetheless, even though the analyst observes “pockets of weakness,” in a more introspective glance at the company, he sees the company’s credit as “mostly stable.” For this reason, Ramsey reiterates a Market Perform rating on LC while raising the price target from $4.00 to $6.50, marking an 18% increase from where the shares last closed.

Ramsey opines, “We believe that LC’s longer-term success will ultimately depend on credit quality and the predictability of investor returns. Given concerns about the general U.S. consumer and LC’s F&G loan performance, we have taken a closer look at LC’s credit trends, with charts in the body of this report showing vintage loss curves, investor returns, loan product details, and origination mix shifts.”

In his analysis, the analyst has determined the company’s loan performance has been “steady” and that its “loan economics remain attractive,” with sustained opportunities for investors to take advantage of solid annualized returns.

However, “Despite what appears to be mostly stable trends on the credit front, we remain on the sidelines at current levels, since it may take time for investors—particularly banks— to return to 1Q16 levels of funding. The drop in originations and increase in expenses have also pushed out profitability, challenging valuation off of earnings or EBITDA,” Ramsey concludes.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, two-star analyst Bob Ramsey is ranked #2,465 out of 4,182 analysts. Ramsey has a 59% success rate and gains 0.1% in his yearly returns. However, when recommending LC, Ramsey faces a loss of 43.5% in average profits on the stock.

TipRanks analytics indicate LC as a Hold. Based on 9 analysts polled in the last 3 months, 1 rates a Buy on LC, 7 maintain a Hold, while 1 issues a Sell. The consensus price target stands at $6.38, marking a 16% upside from where the stock is currently trading.