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Despite Sell-Off, Needham & Company Lifts PT on LendingTree (TREE)

April 30, 2015 3:33 PM EDT
Get Alerts TREE Hot Sheet
Price: $40.98 --0%

Rating Summary:
    11 Buy, 5 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 9 | Down: 6 | New: 8
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With shares down over 10% following numbers before the open, Needham & Company analyst Kerry Rice reiterated a Buy rating and lifted his price target on LendingTree (NASDAQ: TREE) to $70.00 (from $60.00) following solid Q1 results.

Rice commented, "LendingTree solidly beat Q1 revenue and EBITDA expectations. While Personal Loans remained the engine of growth, the Mortgage business also re-accelerated modestly as the low interest rate environment drove Refi's. Tree also raised FY15 guidance and provided Q2 revenue guidance upside. Q2 EBITDA was in-line with consensus as a result of the company's increased marketing spend, particularly on its soon to be launched TV spots. There may be confusion about the linearity of Personal Loans revenue growth in Q1, but we estimate Personal Loans revenue increased each month of Q1 and represented nearly 60% of Non-mortgage revenue. We are raising our FY15 revenue and EBITDA estimates to reflect not only the accelerating Non-Mortgage business, but also the modest re-acceleration in the Mortgage business."

The firm lifts FY 2015 EPS from $1.05 to $1.22 and FY 2016 EPS goes down from $1.95 to $1.76.

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

Shares of LendingTree closed at $61.75 yesterday.



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