IB Net Payout Yields Model

LendingClub: Turnaround Story Of The Year?

LendingClub (LC) is up 10% in a tough tape, but the stock should be soaring 20% or 30% or 40% on the Q2 numbers.
  • Record loan originations of $3.1 billion
  • Record net revenue of $190.8 million
  • Record adjusted EBITDA of $33.2 million 
Even the guidance was strong:
  • Reaffirms 2019 net revenue forecast of $765M-$795M
  • 2019 adjusted net loss of $5M-$20M vs prior range of $9M-$29M.
  • Q3 net revenue of $200M-$210M; consensus estimate of $204.7M
  • Q3 adjusted net income of $0M-$5M
The fintech has $670 million in cash and financial assets with a market cap of only $1.2 billion. The stock should trade at multiples of the current stock price. 

Disclosure: Long LC. Please review the disclaimer page for more details. 


The Patriot said…
One of the best opportunities out there. P2P is the finance sector of tomorrow and keeps on growing robustly. LC is the biggest and only solely dedicated (excluding companies like Goldman Sachs) publicly traded U.S. company in the sector.

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