J.P. Morgan analyst Melissa Wedel has reiterated their bullish stance on TREE stock, giving a Buy rating yesterday.
Melissa Wedel’s rating is based on a variety of positive indicators within Lendingtree’s recent performance and future prospects. The company has shown a strong upward revision in its FY24 revenue guidance, aligning with higher than anticipated earnings before interest, taxes, depreciation, and amortization (EBITDA). The insurance segment, in particular, has been a significant driver of growth, contributing to a surge in the company’s share price. Additionally, the management’s outlook has become more optimistic, indicating that they believe the worst market conditions have passed and anticipating continued growth across all business segments.
Furthermore, Wedel’s Buy recommendation is supported by Lendingtree’s diverse consumer finance platform, which is poised to capitalize on long-term growth opportunities. Despite near-term market volatility, the platform’s flexibility and management’s strategic initiatives are expected to generate increased revenue over time. The target price of $53 by December 2024 reflects a 10x multiple of the projected 2025 EBITDA, which suggests a healthy return potential. This projection is aligned with the company’s historical valuation post a significant acquisition, underscoring confidence in Lendingtree’s future performance.
In another report released yesterday, Needham also reiterated a Buy rating on the stock with a $56.00 price target.
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Lendingtree (TREE) Company Description:
LendingTree, Inc. engages in the operation of online loan marketplace for consumers seeking loans and other credit-based offerings. It operates through the following segments: Home, Consumer, Insurance, and Other. The Home segment consists of purchase mortgage, refinance mortgage, home equity loans and lines of credit, reverse mortgage loans, and real estate. The Consumer segment includes credit cards, personal loans, small business loans, student loans, auto loans, deposit accounts, and other credit products. The Insurance segment comprises of insurance quote products. The Other segment deals with the resale of online advertising space to third parties and revenue from home improvement referrals. The company was founded Douglas Lebda in April 2008 and is headquartered in Charlotte, NC.
