LendingClub (LC – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst David Chiaverini from Wedbush remains neutral on the stock and has a $7.00 price target.
David Chiaverini’s Buy rating for LendingClub’s stock is based on several considerations. His analysis suggests that the company’s results were largely consistent with the pre-announcement figures, with both loan and deposit growth exceeding his expectations. However, the growth of the average earning assets and Net Interest Margin (NIM) fell short of expectations, resulting in a Net Interest Income (NII) miss, which was somewhat offset by lower-than-expected expenses. Furthermore, Chiaverini notes that LendingClub has been leaning into its structured certificates program, which offers more attractive risk-adjusted returns compared to the Held for Investment (HFI) portfolio.
Looking ahead, Chiaverini anticipates a challenging environment, with negative fair value adjustments expected to remain consistent into the next year. Despite this, he highlights LendingClub’s strategy to increase loan originations due to an increased interest in the certificate program, which should help offset pricing pressure. As a result of these factors, and despite lowering his earnings per share (EPS) estimates for the company for the years 2023, 2025 and 2026, Chiaverini maintains his Outperform rating for LendingClub, attributing it to the company’s discounted valuation in the current challenging environment.
In another report released on October 11, Compass Point also initiated coverage with a Buy rating on the stock with a $13.00 price target.
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LendingClub (LC) Company Description:
LendingClub Corp. engages in the operation of an online credit marketplace for borrowers and investors. It offers personal, business, auto refinance, K-12 education loans and patient solutions. The company was founded by Renaud Laplanche and Soulaiman Htite on October 2, 2006 and is headquartered in San Francisco, CA.
Read More on LC:
- LendingClub Reports Third Quarter 2023 Results
- LendingClub price target lowered to $9 from $10 at Keefe Bruyette
- LendingClub Aligns Cost Structure to Evolving Macroeconomic Environment
- LendingClub sees Q3 revenue $198M-$200M, consensus $199.42M
- LendingClub announces cost reduction plan, reduces workforce by 14%
