Maxim Group Reiterates a Buy Rating on LendingClub Corp (LC)


Maxim Group analyst Michael Diana reiterated a Buy rating on LendingClub Corp (LC) yesterday and set a price target of $22.50. The company’s shares closed yesterday at $14.82.

Diana commented:

“LC reported strong 2Q19 results, in our view: slightly below consensus and within guidance on revenue, and above consensus and guidance on adjusted EBITDA, driven by much better expense control. Our price target is inline with the valuation of best-comparable OnDeck Capital (ONDK – Hold), based on 2020E EV/EBITDA multiples. Both have been depressed lately. We believe LC should trade at least inline with OnDeck because: 1) LC takes no direct credit risk (whereas 2) LC is growing adjusted EBITDA much faster than OnDeck (estimated 2020E vs. 2018A adjusted EBITDA growth of 93% for LC vs. negative growth for OnDeck). We expect LC to break-out based on its 2Q19 earnings report.”

According to TipRanks.com, Diana is a 5-star analyst with an average return of 5.7% and a 57.4% success rate. Diana covers the Financial sector, focusing on stocks such as Manhattan Bridge Capital Inc, Arlington Asset Investment, and Westamerica Bancorporation.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for LendingClub Corp with a $23.17 average price target.

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The company has a one-year high of $20.15 and a one-year low of $12.30. Currently, LendingClub Corp has an average volume of 2.33M.

Based on the recent corporate insider activity of 69 insiders, corporate insider sentiment is negative 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.

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