NEW YORK (TheStreet) -- Shares of LendingClub (LC) were climbing 6.65% to $5.13 on heavy trading volume mid-Thursday afternoon as the stock's rating was upped to "overweight" from "equal weight" with a $7 price target at Morgan Stanley.

The firm said shares of the San Francisco-based online lender are "inexpensive" and the company has a few positive catalysts ahead, according to the Fly.

Competition in LendingClub's lending business is waning while demand for loans remains robust, the firm said, adding that the company's securitization volumes are strong.

The company will report 2016 third quarter results before the market open on Monday. Analysts surveyed by FactSet are looking for an adjusted loss of 7 cents per share on revenue of $103.3 million.

In the same quarter last year, the company reported adjusted earnings of 4 cents per share on revenue of $116.3 million.

LendingClub recently increased its interest rates and tightened its credit standards for borrowers, primarily impacting users with low credit scores.

More than 8.24 million shares have traded so far today, above the 30-day average volume of about 6.75 million.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "sell" with a ratings score of D-.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: LC


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