Lending Club (LC) PT Raised to $20 at Piper Sandler; Stock Named 2025 Top Idea

Piper Sandler analyst Brad Capuzzi raised the price target on Lending Club (NYSE: LC) to $20.00 (from $15.00) while maintaining an Overweight rating.

The analyst said: "In conjunction with "2025 Financial Services Top Ideas" where LC was selected as a 2025 top idea, we are updating our model and price target. We are maintaining our 4Q24E operating EPS of $0.09, but increasing our FY25E operating EPS to $0.90 from $0.88 and FY26E to $1.35 from $1.32 as we take into account better loan sale pricing. LC saw an improvement in loan sale prices in 3Q24 as bank buyers started re-engaging, yet prices still remain well below the company's historical average implying potential upside. We are increasing our price target to $20 from $15. Our price target is based on a core earnings multiple on FY26E (moving forward one year from FY25E previously) after normalizing provisions to 370 bps (down from 390 bps given improving credit performance), assume 10% req'd return (down from 10.5% given improving earnings outlook) + adding back est. excess capital."

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