IPOE - LendingClub: Now A Fintech Bank With The Possibility For A Massive Squeeze Higher

March, 15 2021 03:45 PM Social Capital Hedosophia Holdings Corp. V Class A

LendingClub's business model is transforming into one with recurring revenue, the type that receives outsized multiples across industries.
With LendingClub's recent earnings presentation, we can develop a near and long term earnings model, which shows substantially more revenue and earnings than the current valuation implies.
LendingClub trades at an $800M Enterprise Value. Peer companies Upstart (public) and SoFi (Going public via SPAC) command $4.3B and $8.5B valuations respectively. The valuation gap is not warranted.
2021 will be the year of Fintech. The outsized attention placed on this industry will be warranted. As investors see exposure to growth at a reasonable valuation, LendingClub will be attractive as the most undervalued opportunity.
Value re-ratings happen fast in today's market. I would not be surprised to wake up and see LendingClub shares double in weeks versus months.

For further details see:

Company Name:	Social Capital Hedosophia Holdings Corp. V Class A
Stock Symbol:	IPOE
Market:	NYSE
Website:	sofi.com/