LendingTree stock price target raised to $62 by Truist on strong Q2 results

Published 04/08/2025, 17:12
LendingTree stock price target raised to $62 by Truist on strong Q2 results

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.