Lending Tree (TREE) PT Lowered to $62 at Needham & Company

Needham & Company analyst Mayank Tandon lowered the price target on Lending Tree (NASDAQ: TREE) to $62.00 (from $105.00) while maintaining a Buy rating.

The analyst commented, "TREE recently pre-announced weak preliminary 2Q22 results, calling for revenue, VMM, and EBITDA to all fall short of the prior guide provided last quarter due to various macroeconomic factors weighing on the home and insurance segments. Management noted that the recent spike in interest rates, elevated inflation, and recessionary fears are creating additional challenges for TREE's mortgage lending and insurance partners. While the NT outlook is disappointing, the shares are trading at an EV/FY23 EBITDA multiple of just ~7.75x, setting up what we view as a favorable risk-reward for LT focused investors given the positive secular trends driving personal finance shopping, marketing, and distribution to digital channels. We are maintaining our BUY rating but lowering our target to $62 to reflect the incremental NT headwinds."

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