LC - LendingClub To See Earnings Growth As Net Interest Margin Inflects Higher Next Year: Analyst Forecasts Upside | Benzinga
Piper Sandler analyst Brad Capuzzi initiated coverage on LendingClub Corporation (NYSE: LC) with an Overweight rating and $8 price target.
According to the analyst, LC is well positioned to see earnings growth as the net interest margin inflects higher in 2024 due to lower funding costs, significant cost reductions, and net charge-offs moderating in the back half of 2024.
LC has the opportunity to lower funding costs, given the deposits are fully funding loans held for investment.
In addition, the stock is undervalued, trading at 0.55x P/TBV, given the analyst's estimate of 10% ROTCE.
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