Needham & Company Raises Price Target on LendingTree (TREE) to $108 Following 2Q Results

Needham & Company reiterated a Buy rating on Tree.Com (NASDAQ: TREE), and raised the price target to $108.00 (from $84.00), following 2Q15 results and guidance. Tree posted 2Q15 revenue of $55.1M, above consensus of $52.3M. The company increased guidance for FY15 to $225-230M to $202-208M.

Analyst Kerry Rice commented, "While Tree solidly beat Q2 revenue and EBITDA expectations, the guidance was exceptional, far exceeding expectations. Personal Loans remained the engine of growth, but the Mortgage business was also solid. The strong FY15 revenue guidance is driven by a rapid 2H15 acceleration in Mortgage and sustainable +130% Non-mortgage growth. We believe the incremental Mortgage growth is due to the recently launched call center and Loan Directory and Local Introductions products, which are gaining traction with traditional lenders. We believe Tree's new products, scale, and technology innovations are lifting conversions across its financial product categories, and serving as a flywheel to drive lenders to increase spending with Tree. EBITDA is also rising as Tree is gaining operating leverage, even with its sales and marketing expenses."

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

Shares of Tree.Com closed at $82.60 yesterday.

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