LendingTree Rises; Compass Point Analysts Call Shares Undervalued, Lift Online Lender to Buy

LendingTree stock has dropped 30% in the past six months. Compass Point affirmed its target price at $340.
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LendingTree (TREE) - Get Report shares on Monday were higher after Compass Point analysts upgraded the stock to buy from neutral, calling the online-lending marketplace's stock undervalued after a several-month drop.

Compass Point affirmed its $340 target price on the stock, indicating 15% potential upside from the stock’s Friday closing price of $294.39. 

LendingTree shares at last check were up 1.9% near $300.

The upgrade comes as LendingTree’s stock has declined 30% over the past six months, compared with the median increase of nearly 8% among stocks in the financial sector  during the period, the firm said.

Earlier this month, LendingTree said it expected 2020 adjusted EBITDA in the $225 million to $235 million range, up 12% to 17% from the midpoint of its 2019 guidance of $201 million. 

The Charlotte, N.C., company guided investors and analysts to full-year 2020 revenue of $1.25 billion to $1.3 billion, up 13% to 18% from the midpoint of its 2019 guidance of $1.11 billion. 

"It is becoming increasingly clear that there is a vast opportunity to leverage our diversified portfolio of businesses to become the destination consumers select for choice, education, and support in all of their financial decisions,” Doug Lebda, chairman and CEO, said after releasing the company’s guidance. 

Analysts' ratings on LendingTree average neutral, with six firms very bullish, two bullish, six neutral, and one very bearish, according to Seeking Alpha.