LendingClub: Perplexing Negativity
LendingClub reported another quarter of records.
The stock still trades at the lows follow the scandal around the former CEO when the business was at risk.
Even a $7 price target offers a very low FY20 EV/EBITDA target.
After yet another earnings report, LendingClub (NYSE:LC) is trading in the $3.50 range following a quarter where key growth metrics grew at a 20% annual clip. My investment thesis remains solidly on track as the online lending platform with nearly $800 million of cash and loans held for sale is constantly ignored by the market. The perplexing value won't last as the fintech continues to survive and thrive in a rising interest rate environment.
Read the full article on Seeking Alpha.
The last quarter should highlight the ability of LendingClub to survive higher interest rates. The stock has been trapped in a tight trading range for most of the year. A break above the recent downtrend along with heading above $4 could finally provide the long awaited breakout.
Disclosure: Long LC. Please review the disclaimer page for more details.