Maxim Group analyst Michael Diana maintained a Buy rating on LendingClub yesterday and set a price target of $21.00.
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Michael Diana has given his Buy rating due to a combination of factors that highlight LendingClub’s strong position and growth potential. The company has recently announced significant loan partnerships, including a $1 billion agreement with BlackRock and a $3.4 billion extension with Blue Owl, which are expected to drive momentum into the second half of 2025 and beyond.
LendingClub’s second-quarter results for 2025 exceeded expectations, with revenue and EPS surpassing forecasts, and the company provided solid guidance for the third quarter. The improved credit quality and better loan sale pricing contributed to these strong results. Additionally, the raised price target to $21 reflects a higher valuation based on increased 2025 estimates and comparisons with SoFi Technologies. The company’s core business of refinancing credit card debt is well-positioned for growth, given the current high levels of credit card debt. Therefore, LendingClub’s shares are seen as undervalued, offering a potential 12-month return of about 32%.
Diana covers the Financial sector, focusing on stocks such as Abacus Life, First Savings Financial Group, and Saratoga Investment. According to TipRanks, Diana has an average return of -0.3% and a 50.30% success rate on recommended stocks.
In another report released yesterday, KBW also maintained a Buy rating on the stock with a $16.50 price target.