There’s a lot to be optimistic about in the Financial sector as 2 analysts just weighed in on TCP Capital (NASDAQ:TCPC) and LendingClub Corp (NYSE:LC) with bullish sentiments.
TCP Capital (TCPC)
In a report released today, Chris Kotowski from Oppenheimer maintained a Buy rating on TCP Capital, with a price target of $17. The company’s shares opened today at $14.75.
Kotowski observed:
“It is hard to write earnings notes on TCPC because they all sound the same. the earnings notes that we have written on the company start with the statement that the $0.36/share dividend was covered out of operating net investment income, this time very comfortably at $0.41. Actual results vs. our estimates appear in Exhibit 1. Basically, it was a classic top-line beat, such that both revenues and expenses (interest, base management fee, incentive fee and other) were all up, but the revenues up more so. Hence, there was some nice operating leverage that fell to the bottom line. We continue to think the shares are very attractive at just 102% of NAV, a tiny premium for a high-quality company.”
According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 11.7% and a 69.8% success rate. Kotowski covers the Financial sector, focusing on stocks such as Eagle Point Credit Company Inc, Great Elm Capital Corporation, and Fidus Investment Corporation.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for TCP Capital with a $18 average price target.
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LendingClub Corp (LC)
In a report released today, Jed Kelly from Oppenheimer maintained a Buy rating on LendingClub Corp, with a price target of $5. The company’s shares opened today at $4.07.
Kelly noted:
“We are maintaining our $5 PT and Outperform rating on LC shares after LC reported 2Q revenue/EBITDA 6%/$8M above the Street on accelerating origination volumes and strong advertising efficacy. We see testing TV advertising as a strong indicator that site conversion trends are improving. Management maintained FY guidance, despite the beat, on rising interest rates and structured product revenue timing uncertainties, while increasing some servicing expenses in back-half to handle more volume. The FTC lawsuit is having minimal impact on core operations and targeting all legacy lawsuits to be settled by year-end. With shares trading at 7x our ’19E EV/EBITDA vs. our expectation for ’17-19E EBITDA to grow 53%, we see multiple expansion on scaling to profitability without being burdened by growth multiples at current levels.”
According to TipRanks.com, Kelly is a 4-star analyst with an average return of 7.7% and a 59.8% success rate. Kelly covers the Services sector, focusing on stocks such as Booking Holdings Inc, Yatra Online Inc, and TripAdvisor Inc.
Currently, the analyst consensus on LendingClub Corp is a Moderate Buy with an average price target of $5.50, which is a 35.1% upside from current levels. In a report issued on July 24, Maxim Group also reiterated a Buy rating on the stock with a $6 price target.
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