Keefe, Bruyette & Woods raises LendingClub stock price target to $16.50 on growth

Published 30/07/2025, 16:38
Keefe, Bruyette & Woods raises LendingClub stock price target to $16.50 on growth

Investing.com - Keefe, Bruyette & Woods raised its price target on LendingClub (NYSE:LC) to $16.50 from $14.00 on Wednesday, while maintaining an Outperform rating on the stock.

The firm cited accelerating growth that drove stronger guidance and a higher return on tangible common equity (ROTCE) for the online lending platform. LendingClub reported second-quarter operating earnings per share of $0.33, exceeding the firm’s above-consensus estimate. The company has maintained profitability over the last twelve months, with a diluted EPS of $0.44 and revenue of $1.2 billion.

The earnings beat was primarily attributed to stronger loan originations and other fee income sources, with net interest income and expenses also performing better than expected. The net interest margin expanded by 17 basis points quarter-over-quarter.

KBW noted this marks the tenth consecutive quarter that LendingClub’s pre-provision net revenue (PPNR) has considerably exceeded guidance. The company’s third-quarter guidance now surpasses previous expectations for the fourth quarter.

The research firm raised its above-consensus estimates further, citing quicker-than-expected acceleration in business trends as the basis for the higher price target and reiterated Outperform rating.

In other recent news, LendingClub Corp reported strong financial results for the second quarter of 2025. The company’s earnings per share (EPS) reached $0.33, significantly exceeding the forecasted $0.16. This represented a notable earnings surprise of 106.25%. LendingClub also reported a revenue increase to $248.4 million, surpassing expectations of $227.5 million. These results highlight the company’s positive financial performance in the recent period. Additionally, while stock price movements are not the focus here, the earnings announcement did coincide with a rise in aftermarket trading. These developments reflect the company’s financial health and may influence investor sentiment.

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