LendingClub falls after JPM downgrades to 'neutral'

Happen

02/12/2024 18:13

** Shares of consumer lender LendingClub  LC.N  slide as
much as 8.6%; last down 5.5% at $15.73
    ** J.P. Morgan downgrades LC to "neutral" from "overweight,"
citing preference for other names with more immediate growth and
monetization opportunities
    ** Brokerage says LC shares have caught up to peers, nearly
tripling over the last year and now seem fairly priced in its
view 
    ** JPM likes LC's roadmap to grow the balance sheet
profitably with high-yielding personal loans and higher loan
sales, but thinks it could take several quarters to play out
    ** Still, brokerage raises LC PT to $17 from $14 — a 2.2%
upside to stock's last close — on improving credit trends and
demand in the loan funding market
    ** Eight of 10 brokerages rate the stock "buy" or higher and
two "hold"; median PT is $16 — LSEG
    ** As of last close, LC shares up 90.4% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com))