BUZZ-LendingClub falls after JPM downgrades to 'neutral'

Reuters2024-12-03

** Shares of consumer lender LendingClub slide as much as 8.6%; last down 5.5% at $15.73

** J.P. Morgan downgrades LC to "neutral" from "overweight," citing preference for other names with more immediate growth and monetization opportunities

** Brokerage says LC shares have caught up to peers, nearly tripling over the last year and now seem fairly priced in its view

** JPM likes LC's roadmap to grow the balance sheet profitably with high-yielding personal loans and higher loan sales, but thinks it could take several quarters to play out

** Still, brokerage raises LC PT to $17 from $14 — a 2.2% upside to stock's last close — on improving credit trends and demand in the loan funding market

** Eight of 10 brokerages rate the stock "buy" or higher and two "hold"; median PT is $16 — LSEG

** As of last close, LC shares up 90.4% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com))

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