SOFI - LendingClub Is Set To Outperform SoFi Technologies

2024-06-17 07:40:19 ET

Summary

• LendingClub is trading at ~0.8x TBV, likely to melt up in a soft landing scenario.
• LC is also set to outperform SOFI in a hard landing due to a lower risk balance sheet and much higher capital buffers.
• LC is innovating with new products like Structured Certificates to address demand under varying conditions.
• The marketplace is a coiled spring just waiting for rates to come down.

LendingClub ( LC ) is currently trading at ~0.8x of tangible book value (TBV) and, in my view, is likely to melt up in a soft landing scenario. I also believe that it will outperform the likes of SoFi Technologies ( SOFI ) in a hard landing driven by a consumer recession, in this article I will explain why....

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