Oppenheimer Sticks to Their Buy Rating for Lendingtree Inc

By Carrie Williams

Oppenheimer analyst Jed Kelly maintained a Buy rating on Lendingtree Inc (NASDAQ: TREE) yesterday and set a price target of $400. The company’s shares closed yesterday at $318.

Kelly wrote:

“We view TREE as a top pick for gaining exposure to the increasing digitization of financial services. After speaking to TREE’s senior management at this week’s Lendit Fintech Conference, we are incrementally bullish on TREE leveraging its leading lender coverage and paid marketing competencies, with its digital mortgage initiatives, to drive meaningful share gains, where the company is responsible for just 2% of overall US mortgage originations. We see digital mortgages eventually increasing lender capacity, while expanding the company’s competitive moat, where TREE generated ~6x the incremental mortgage revenue versus its closest online competitor in 2017. Furthermore, during a keynote, Quicken Loans’ CEO indicated intentions to be more aggressive on share gains during rising rates, a positive for TREE, in our view. Maintain Outperform/$400 PT.”

According to TipRanks.com, Kelly is a 4-star analyst with an average return of 6.6% and a 55.5% success rate. Kelly covers the Services sector, focusing on stocks such as Booking Holdings Inc, Yatra Online Inc, and TripAdvisor Inc.

Lendingtree Inc has an analyst consensus of Moderate Buy, with a price target consensus of $365.82.

Based on Lendingtree Inc’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $161 million and GAAP net loss of $7.73 million. In comparison, last year the company earned revenue of $133 million and had a net profit of $6.87 million.

Based on the recent corporate insider activity of 85 insiders, corporate insider sentiment is negative on the stock. Last month, Neil Salvage, the President of TREE sold 10,000 shares for a total of $3,505,000.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

LendingTree, Inc. engages in the operation of online loan marketplace for consumers seeking loans and other credit-based offerings. It provides mortgage loans, home equity, reverse mortgage, auto loans, credit cards, personal loans, student loans, and small business loans.