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LendingClub bull stays so after yesterday's disappointment

Published 12/08/2017, 07:35 AM
© Reuters.  LendingClub bull stays so after yesterday's disappointment
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  • Guidance for Q4 of this year and all of next year was shy of hopes yesterday, sending LendingClub (NYSE:LC) tumbling 15.5%.
  • "We find it remarkable that a reduced outlook due in large part to short-term adjustments to the company's credit model," would spook investors so much, says BTIG's Mark Palmer, reiterating his Buy rating, but trimming the price target to $7 from $9 (still 100% upside from yesterday's close).
  • He notes banks - which fled LC's platform in wake the CEO resignation - have returned. Further, the company has diversified funding with successful loan securitizations, and approved more than 100M loan applications this year.
  • While LendingClub has tightened underwriting standards and thus reduced its near-term outlook, the future looks promising at a very cheap price, says Palmer.
  • Shares +1.7% premarket to $3.65.
  • Now read: Why Bitcoin Is Not A Near-Term Threat To Visa And MasterCard


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