LendingClub (LC): Raising PT to $6.50 - FBR
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
FBR Capital analyst, Bob Ramsay, reiterated his Market Perform rating on shares of Lending Club (NYSE: LC) after performing an analysis of the company's credit quality.
The analyst believes that LC's longer-term success will ultimately depend on credit quality and the predictability of investor returns. Given concerns about the general U.S. consumer and LC's F&G loan performance, the analyst has taken a closer look at LC's credit trends, investor returns, loan product details, and origination mix shifts.
The analyst stated "Despite what appears to be mostly stable trends on the credit front, we remain on the sidelines at current levels, since it may take time for investors—particularly banks— to return to 1Q16 levels of funding. The drop in originations and increase in expenses have also pushed out profitability, challenging valuation off of earnings or EBITDA".
The analyst raises his price target to $6.50 (from $4.00 equal to 2.7x TBV due to expanding market multiples.
Shares of Lending Club closed at $5.50 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Oppenheimer Cuts Price Target on Workday (WDAY) Following 3Q; Reiterates Outperform
- Oppenheimer Remains Sidelined on Ambarella (AMBA) Following 3Q
- Brean Capital Cuts Price Target on G-III Apparel Group (GIII) Following 3Q Miss
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!