FBR Capital Starts Lending Club (LC) at Outperform

FBR Capital initiates coverage on Lending Club (NYSE: LC) with a Outperform rating and a price target of $16.00.

Analyst Bob Ramsey commented, "We initiate coverage of Lending Club Corporation (LC) with an Outperform rating and a 12-month price target of $16, equal to 40x our FY17 EPS estimate of $0.40 and 30x our 2017 EV/EBITDA estimate. Lending Club is a true marketplace lender, without any direct credit exposure, capital constraints, or loans on its balance sheet. Rather, its technology provides borrowers access to a faster, easier, and cheaper way to borrow than traditional lenders and offers investors assets with compelling riskadjusted yields. Growth has been explosive: We expect Lending Club to originate roughly $8 billion of loans this year, an increase of 86% from 2014. We think as the company continues to build scale and to leverage its cost base, profitability should grow."

For an analyst ratings summary and ratings history on Lending Club click here. For more ratings news on Lending Club click here.

Shares of Lending Club closed at $12.14 yesterday.

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