LendingTree (TREE): 4 Reasons To Like The CompareCards Acquisition - Needham

November 17, 2016 6:32 AM EST
Get Alerts TREE Hot Sheet
Price: $106.00 +0.05%

Rating Summary:
    11 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Needham & Company analyst, Kerry Rice, reiterated his Buy rating on shares of Lending Tree (NASDAQ: TREE) after the company announced the announced the acquisition of CompareCards for $130M.

The analyst is positive on this acquisition for the following reasons:
1) the acquisition should significantly strengthen TREE’s position in the credit card market from both an issuer and competitive standpoint
2) CompareCards' 21% EBITDA margin is accretive and EBITDA levels should continue to grow
3) the target company's Search Engine Marketing expertise is leveragable across LendingTree’s other brands, which should augment the company’s already high quality consumer traffic
4) the analyst believes the valuation is reasonable

No change to the price target of $140.

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

Shares of Lending Tree closed at $88.15 yesterday.

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