Lending Tree (TREE) PT Raised to $58 at Susquehanna

Susquehanna analyst James Friedman raised the price target on Lending Tree (NASDAQ: TREE) to $58.00 (from $50.00) while maintaining a Neutral rating.

The analyst commented: "We are hosting TREE for a virtual NDR on Nov. 5; please reach out to your SFG salesperson for details. TREE's 3Q revenue came in stronger than SFG's estimates thanks to hyper-growth in the Insurance segment, which rose 210% Y/Y. That said, EBITDA margin of 10% fell 400 bps Y/Y as TREE spent 74% of revenue on marketing. Management emphasized it runs the company for VMM $ and is marketing to funnel increased demand. While we are encouraged by the improved lead generation, we model TREE on an EV/EBITDA basis so we remain Neutral rated, although we are raising our price target to $58 ($50 prior) on a 7.6x EV/EBITDA multiple using our 2026 EBITDA of $153.5 mln. 3Q24 Results. Total revenue of $260.8 mln (+68.0% y/y) beat SFG of $239.5 mln (+54.3% y/y). Variable marketing margin of 29.6% came in softer than SFG at 33.6%. Adjusted EBITDA margin was 10.3% vs. SFG 9.4%. Adjusted EPS was $0.80 vs. SFG of $0.85."

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