Ticker
$LC
Industry
Financial
Type
Beaten Up
Rating
Covered
Category
General
Target Price
$21.00
Latest Report
Notes
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Strategic and financial benefits of the Acquisition include:
- Increased and more stable revenue driven by the addition of net interest income from loans held for investment, complementing existing marketplace revenue streams;
- Increased opportunity to attract new members and deepen relationships with existing members through the addition of new digital banking products and services that leverage LendingClub’s marketing and brand strengths;
- Increased resiliency with access to stable, low-cost deposit funding replacing higher-cost and more volatile third-party warehouse funding; and
- Expense benefits by capturing the fees that were historically paid to third-party issuing banks.
Financials & Valuation
Using 2x sales on 2022 guidance = $2.3bn market value or $21 per share. This target is for the next ~9 months as they execute in 2022. Sales and earnings growth would obviously extend that in 2023 and beyond.
Resources
LendingClub ($LC) — Initiation
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