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Investing.com - Truist Securities raised its price target on LendingTree (NASDAQ:TREE) to $62.00 from $60.00 on Monday, while maintaining a Buy rating following the company’s second-quarter 2025 results. The stock, currently trading at $50.43, appears undervalued according to InvestingPro analysis.
LendingTree pre-announced its second-quarter results on July 23, which Truist described as "stronger than expected." The financial services company saw double-digit year-over-year growth across all three of its key segments during the quarter, with impressive revenue growth of 51.65% over the last twelve months. InvestingPro data shows that 4 analysts have recently revised their earnings estimates upward for the upcoming period.
Truist highlighted LendingTree’s scale, diversified revenue base, and valuation as providing "an attractive play" on the ongoing recovery in the Insurance segment and potential future recovery in the Home and Consumer segments as interest rates normalize.
The company’s net leverage ratio improved to 3x as of June 30, down from 3.5x at the end of 2024, which Truist noted gives management "more flexibility for shareholder-friendly capital allocation."
According to Truist’s analysis, LendingTree is currently trading at 1.0x FY25 revenue estimates and 8.1x FY25 adjusted EBITDA estimates.
In other recent news, LendingTree Inc. reported a strong performance for the second quarter of 2025, significantly surpassing earnings expectations. The company achieved an earnings per share (EPS) of $1.13, which was well above the forecasted $0.35, resulting in a notable earnings surprise of 222.86%. Revenue also exceeded predictions, coming in at $250 million compared to the anticipated $244.03 million, marking a 2.49% surprise. These results highlight a robust financial period for LendingTree. The company’s stock experienced a modest increase following the earnings announcement. These developments reflect positively on LendingTree’s financial health and operational efficiency.
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