Lending Tree (TREE) PT Raised to $70 at Oppenheimer

Oppenheimer analyst Jed Kelly raised the price target on Lending Tree (NASDAQ: TREE) to $70.00 (from $65.00) while maintaining a Outperform rating.

The analyst commented: "We are increasing our TREE PT to $70 ($65 previously) after the company reported 3Q EBITDA 9% above consensus on Insurance VMM accelerating 30pts to 77% y/y. We see the Insurance marketing up-cycle continuing over the next 18 months, allowing TREE to generate healthy FCF and right-size its Capital structure to its target leverage ratio. Consumer segment VMM declined 19%, however PLs, its highest margin product, is stabilizing (+5% y/y) and expecting a decent snap-back when interest rates start to steadily decline. Our model projects TREE generating '25E FCF of $80M, that combined with $97M in cash on hand and its $50M undrawn Apollo term-loan, provides ample ability to meet the '25 convertible note maturity of $115M; our PT is based on 11x '25E EBITDA; Maintain Outperform."

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