Credit Suisse published their stock analysis for LendingClub today. They initiated coverage a day after 5 other analysts at $24.00 per share and a Neutral rating while citing volatility. The current stock price is $19.49.
Published: 1/21/2015 | 12-mo Price Target: $24.00 | Rating: Neutral (Volatile)
Summary: LendingClub is a leading player in a nascent and large addressable market (consumer credit), which exhibits tranches of up to $1.2 trillion in TAM (total addressable market). They have built an infrastructure-light marketplace with network effects that allows growth and scale. They should continue to expand long-term margin from the 9% adjusted EBITDA margin in 2014 to the 40% margin in the long-term. The $24.00 target price valuation is based on discounted cash flows, using a 11% WACC and 3% terminal growth rate. Only valuation holds us back from a more favorable stance, as LC shares currently trade within 10% of our valuation.