Tuesday marked the end of the sell-side quiet period. This means underwriting banks can now publish their ratings and give us some insight as to where they see the stock price going in the coming months.
So how have Lending Club faired? All recognise the huge potential in terms of products, services, geography and the fact Lending Club is still growing at a significant pace. However, the general consensus seems to be that the current value reflects many of these points and the share price should begin to settle down at around $22.
- Stifel was a ‘Hold’ but gave no price target this time
- Goldman Sachs were ‘Neutral’ rating and believe that $22 is where they see things settling
- Citigroup were ‘Neutral’ and set a $23 target
- Morgan Stanley were ‘Neutral’ and a expect $22;
- Only BMO Capital issued an ‘Outperform’ and expect to see the $28 range again
There’s no doubt that the LendingClub’s IPO has put Marketplace Lending (P2P, Crowdlending etc.) firmly on the map. However, it is just as important for our industry that a stable share price, in-line with analysts’ expectations and Lending Club’s ambitions are delivered.