LC - LendingClub: Back To Growth Mode

2024-05-02 17:28:46 ET

Summary

• LendingClub Corporation is back in growth mode due to a stable interest rate environment, with opportunities to address consumer debt and attract refinancing.
• The digital bank reported a profit and boosted TBV in Q1 '24, and is seeing positive indications for the return of banks to investing in loans originated on the platform.
• The stock trades below TBV of $10.61 and a minimal multiple of normalized earnings above $1+ per share.

The consumer lending market faced a major hiccup in the last year as interest rates soared, causing investors to reign in funding for loan originations. LendingClub Corporation ( LC ) took a hit with a slowdown in loan demand from institutional investors, but the digital bank is now back in growth mode due to a more stable interest rate environment. My investment thesis remains ultra-Bullish on the stock, still trading below tangible book value....

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