LendingTree (TREE): 4 Reasons To Like The CompareCards Acquisition - Needham
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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.
Shares of Lending Tree closed at $88.15 yesterday.
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