Lending Tree (TREE) PT Raised to $67 at Needham
Needham analyst Mayank Tandon raised the price target on Lending Tree (NASDAQ: TREE) to $67.00 (from $56.00) while maintaining a Buy rating.
The analyst comments "TREE's 2Q24 results came in well above expectations on the top-line, with the upside driven by stronger insurance revenue as carrier demand for leads is rapidly recovering following a prolonged downturn. While VMM/EBITDA came in slightly below expectations, we believe this is largely due to CAC normalizing as customer traffic improves rather than a longer-term structural shift in the business. We are raising our estimates, and believe that many products in TREE's non-insurance verticals (mortgage, personal loans) are potential beneficiaries if the Fed lowers interest rates later this year and/or in FY25. With the shares expected to open at an EV/EBITDA multiple of ~9.5x our FY25 estimate, we view the risk-reward as favorable given the improving fundamentals. We are reiterating our BUY rating and raising our target to $67."