From Financial Modeling Prep: 2025-01-03 10:42:00

LendingClub (NYSE:LC) shares surged over 4% today following Piper Sandler’s price target increase to $20 from $15, reiterating an Overweight rating. Analysts raised 2025 EPS projections to $0.90 and 2026 EPS to $1.35, citing strong loan sale pricing and earnings growth. The stock is a top pick in financial services for 2025.

The fourth-quarter 2024 operating EPS estimate remains at $0.09, with fiscal 2025 and 2026 EPS projections revised upwards. Bank buyers re-engaging led to better-than-expected loan sale prices in Q3 2024. Despite current prices below historical averages, there is potential for further upside.

The updated price target is based on LendingClub’s fiscal 2026 core earnings multiple, reflecting improved credit performance. Normalized provisions were reduced to 370 bps from 390 bps, with a lower required return assumption of 10%. These changes consider the company’s enhanced earnings outlook and estimated excess capital.



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