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Investing.com - Piper Sandler raised its price target on LendingClub (NYSE:LC) to $15.50 from $13.00 on Wednesday, while maintaining an Overweight rating on the stock. Currently trading at $15.63, InvestingPro analysis suggests the stock is undervalued, with a beta of 2.45 indicating higher volatility than the market.
The price target increase follows LendingClub’s second-quarter 2025 results, which exceeded both Street expectations and the firm’s estimates. The company reported higher revenue and lower loan loss provisions, though these positive factors were partially offset by increased expenses.
LendingClub surpassed its own guidance for both loan originations and pre-provision net revenue (PPNR) during the quarter. The company also demonstrated improvement in credit quality metrics.
For the third quarter of 2025, LendingClub provided guidance of $90 million to $100 million in PPNR and originations between $2.5 billion and $2.6 billion. This outlook exceeds Piper Sandler’s previous PPNR estimate of $88 million and the Street consensus of $81 million.
Piper Sandler characterized the quarter as "very strong" with solid results that are driving estimates higher for the online lending platform.
In other recent news, LendingClub reported strong second-quarter 2025 earnings, with earnings per share (EPS) reaching $0.33, significantly surpassing the projected $0.16. The company also experienced a revenue increase to $248.4 million, exceeding expectations of $227.5 million. These results highlight a 106.25% earnings surprise, signaling robust performance for the online lending platform. Additionally, Keefe, Bruyette & Woods raised its price target for LendingClub to $16.50 from $14.00, maintaining an Outperform rating. The firm attributed this adjustment to accelerating growth, which led to stronger guidance and a higher return on tangible common equity (ROTCE). The recent developments reflect positively on LendingClub’s financial health and future prospects.
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