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 $3.61.
Kelly said:
“We are increasing our ’20E EBITDA by 10% on higher Opex/Marketing leverage and maintaining our $5 PT. Initial ’19 EBITDA guidance of $115-135M, above Opco’s $116M, but below Street’s $138.5M. However, BPO initiatives improving sequentially implies exiting 4Q at run-rate EBITDA margins of 20%, implying ~$170M for 2020 is achievable or 14% above our current estimate. Additionally, a higher recurring investor fee mix and pricing optimization benefiting transaction fees, provides an additional margin boost. Pushback likely around back-half weighted guidance and macro clouding top-line visibility, while we monitor management harvesting too much profit at expense of market share opportunities and new revenue streams. With shares trading at 6.7x our ’20E EV/EBITDA versus a 24% ’18-20E CAGR, we believe market is under-appreciating LC’s scale translating into profitable growth.”
According to TipRanks.com, Kelly is ranked #1110 out of 5188 analysts.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for LendingClub Corp with a $4.07 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 $92.01 million.
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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, and K-12 education loans; and patient solutions. The company was founded by Renaud Laplanche in October 2006 and is headquartered in San Francisco, CA.
