- LendingClub (NYSE:LC) advances 2.6% after its Q3 results showed strong loan originations with higher interest rates, and improved adjusted EBITDA margin.
- Shares rose as much as 4.7% earlier Wednesday.
- Q3 loan originations increased 18% Y/Y to a record $2.89B, as demand strengthened for personal loans to refinance credit balances.
- LendingClub raised interest rates on loans by 49-144 basis points and tightened its underwriting standards, writes BTIG analyst Mark Palmer in a note.
- Palmer reiterates his buy recommendation and $7 price target.
- He says the company's increased adjusted EBITDA margin to 15.2% in Q3 was "particularly heartening" given criticism it's received on elevated expenses.
- Also management said it's in "continued constructive engagement" with the FTC over ongoing litigation against the company.
- Analyst ratings: 5 buys; 11 holds; 0 sell/underperforms.
- Previously: LendingClub increases year guidance for adjusted EBITDA (Nov. 6)
- Now read: LendingClub Corporation 2018 Q3 - Results - Earnings Call Slides
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