UPDATE: Oppenheimer Downgrades Lending Club (LC) to Perform

July 10, 2020 3:31 AM EDT
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Price: $29.22 +3.73%

Rating Summary:
    7 Buy, 15 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 9 | Down: 10 | New: 35
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(Updated - July 10, 2020 8:45 AM EDT)

(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."

For an analyst ratings summary and ratings history on Lending Club click here. For more ratings news on Lending Club click here.

Shares of Lending Club closed at $4.83 yesterday.

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