The initial public offering (IPO) train keeps on rolling as financial technology firm Lendbuzz files to list shares in New York.
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The Boston-based company specializes in automotive loans and financing and is targeting a valuation of $1.5 billion from its IPO, according to media reports. The company, which was founded a decade ago, uses alternative data and machine learning algorithms to assess the creditworthiness of consumers with limited financial history or a poor credit rating.
Lendbuzz’s loans are funded by asset-backed securitization, warehouse loans from traditional banks, and through the sale of portfolios to institutional investors, mostly insurance companies. The banks, institutions, and insurers receive yield from Lendbuzz.
IPO Wave
Wall Street investment banks Goldman Sachs (GS) and JPMorgan Chase (JPM) are managing Lendbuzz’s IPO. An exact date for the IPO, the price per share, and the exchange on which the stock will trade have not yet been announced.
Lendbuzz is the latest in a series of fintech companies and cryptocurrency concerns that have gone public in recent months. The last week alone has seen IPOs from fintech company Klarna (KLAR), blockchain lender Figure (FIGR), and crypto exchange Gemini. Companies are racing to tap public markets with stocks at an all-time high.
Is CRCL Stock a Buy?
As Lendbuzz is not yet publicly traded, we’ll look instead at the stock of stablecoin issuer Circle Internet Group (CRCL), which went public earlier this year. As one can see below, the stock has a consensus Hold rating among 16 Wall Street analysts. That rating is based on six Buy, six Hold, and four Sell recommendations issued in the last three months. The average CRCL price target of $175.67 implies 50.82% upside from current levels.
Read more analyst ratings on CRCL stock