Oppenheimer analyst Jed Kelly maintained a Buy rating on LendingClub Corp (LC) today and set a price target of $5. The company’s shares closed yesterday at $3.22.
Kelly commented:
“We are increasing our ’20E EBITDA by 9% on higher Opex leverage and maintaining our $5 PT following a solid 1Q beat (Rev./EBITDA 6%/$7M above Street). Key takeaway is management increasing its medium-term margin target 500bps to 25% on higher cost-initiative benefits, which implies a 2020 margin target of 20%. Despite the beat, management maintained FY guidance on decelerating 2Q:19 that appears to be mostly a function of tougher comps, and we carry an upside bias to profitability estimates on expense initiatives (BPO/Salt Lake) accelerating margin expansion. We monitor harvesting too much profit at expense of share gains, but new SMB partnerships and YES program are encouraging incremental growth opportunities. Maintain Outperform.”
According to TipRanks.com, Kelly is ranked #694 out of 5182 analysts.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for LendingClub Corp with a $4.40 average price target.
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Based on LendingClub Corp’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $13.46 million. In comparison, last year the company had a GAAP net loss of $31.18 million.
Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is neutral on the stock.
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LendingClub Corp. engages in the operation of an online credit marketplace for borrowers and investors. It offers personal, business, auto refinance, K-12 education loans and patient solutions. The company was founded by Renaud Laplanche and Soulaiman Htite in 2006 and is headquartered in San Francisco, CA.
