Shares of online lending company LendingClub Corp. (LC) - Get LendingClub Corp Report jumped Thursday after analysts upgraded the company following its second-quarter surprise profit and strong revenue report.
Analysts at Wedbush raised the company's price target to $33.50 from $25 per share while Credit Suisse raised its target to $28 from $16 per share.
LendingClub shares jumped 55% to $25.11 in Thursday afternoon trading after reporting its second-quarter results following the closing bell Wednesday.
"Our first full quarter operating a digital bank was the most profitable quarter in LendingClub's history," said CEO Scott Sanborn. "This is the beginning of a dramatically enhanced earnings trajectory for the business."
The San Francisco-based company raised its full year revenue guidance by 45% and revenue grew 93% sequentially in the quarter.
The company reported earnings of 9 cents per share after reporting a loss of 60 cents per share in the same period a year ago. Analysts were expecting a net loss of 40 cents per share.
Revenue for the quarter jumped to $204 million from $44 million a year ago, also topping analyst consensus estimates of $130 million, according to FactSet.
"Our transformation is fueled by our competitive advantages, which include our 3.5 million-plus members, deep data capabilities, marketplace model as well as our more efficient operating platform," Sanborn said.
Separately, the company also announced that it settled a previously disclosed Federal Trade Commission investigation with a scheduled $18 million payment for consumer remediation. The company says that the payment is already accounted for in prior releases.