In a report released today, Jed Kelly from Oppenheimer maintained a Buy rating on Lendingtree Inc (NASDAQ: TREE), with a price target of $320. The company’s shares opened today at $250.
Kelly observed:
“TREE reported in-line EBITDA (+30% y/y) and raised FY guidance on QuoteWizard acquisition. Key takeaway is mgmt. expecting Mortgage revenue to grow in ’19 (-25% y/y in 3Q), highlighting improving October trends in unit revenue from higher conversion, with lower cost-per-leads (CPL). and acquisitions drove non-Mortgage revenue (+45% y/y), with Cards stabilizing. of traffic) introduced purchases, seeing 4x higher conversion, with 20 lenders in queue. Trading at 18x our ’19E EBITDA, we expect some investor pushback on valuation for a scalable internet platform with higher cyclicality and limited near-term visibility in largest product segment. However, we maintain Outperform/$320 PT on LT view that Tree’s paid marketing competencies and high product diversification will generate increased share in the $20B US financial services advertising market..”
According to TipRanks.com, Kelly is a 4-star analyst with an average return of 4.7% and a 52.1% success rate. Kelly covers the Services sector, focusing on stocks such as Booking Holdings Inc, Yatra Online Inc, and TripAdvisor Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Lendingtree Inc with a $273.40 average price target, representing a 9.4% upside. In a report issued on October 31, Northland Securities also upgraded the stock to Buy with a $273 price target.
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The company has a one-year high of $404.40 and a one-year low of $183.25. Currently, Lendingtree Inc has an average volume of 193.2K.
Based on the recent corporate insider activity of 94 insiders, corporate insider sentiment is negative on the stock.
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LendingTree, Inc. engages in the operation of online loan marketplace for consumers seeking loans and other credit-based offerings. It provides mortgage loans, home equity, reverse mortgage, auto loans, credit cards, personal loans, student loans, and small business loans.
