UPDATE: Oppenheimer Downgrades Lending Club (LC) to Perform
- Tech pulls Nasdaq, S&P 500 down as Treasury yields rise
- Merck (MRK) Said to Be Unidentified Suitor for Acceleron Pharma (XLRN), Not Bristol-Myers Squibb (BMY) - Report
- EV Company Polestar To Go Public Via $20 Billion SPAC Deal
- Amazon (AMZN) Price Target Lowered at Morgan Stanley Amid Rising Logistics Workforce Costs, Analyst Expects Stock to be Range Bound in Near Term
- Oil up on tight supply, Brent crude nears $80 a barrel
(updated to add analyst comments)
Oppenheimer analyst Jed Kelly downgraded Lending Club (NYSE: LC) from Outperform to Perform and removed their $25 price target.
The analyst commented, "We are downgrading LendingClub to Perform from Outperform and removing our $25 PT. We believe LC is on the correct roadmap in pivoting to a bank model once the Radius Bank acquisition receives regulatory approval and closes, expected early to mid-2021. However, management expects 2Q originations to decline 90% year/year, and the key initiative is now capital preservation in order to appease regulators. As a result, despite trading at 0.5x price to tangible book, we have a tough time identifying any near-term catalysts and expect shares to remain range-bound, based on a difficult fundamental backdrop creating limited visibility on originations and funding. We would become more constructive when we see a clear earnings path emerging from Radius to target financial equity investors."
Shares of Lending Club closed at $4.83 yesterday.
You May Also Be Interested In
- UPDATE: Piper Sandler Downgrades Northfield Bancorp (NFBK) to Neutral
- UPDATE: UBS Starts Howmet Aerospace Inc. (HWM) at Buy
- UPDATE: Oppenheimer Starts Lilium N.V. (LILM) at Outperform
Create E-mail Alert Related CategoriesAnalyst Comments, Downgrades
Related EntitiesEarnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!