LendingTree's Growth in Insurance and SEM Advertising Positions for Multi-Year Cycle, Says Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Keefe, Bruyette & Woods analyst Ryan Tomasello upgraded LendingTree, Inc. (NASDAQ:TREE) to Outperform from Market Perform, raising the price target to $45 from $24, citing growth in the insurance segment and SEM advertising. Tomasello forecasts a 2024 earnings recovery, led by 30-40% Y/Y growth in the insurance segment and continued double-digit growth into 2025. The company is also expected to efficiently address its convert maturity in 1H24 and is well-positioned for a multi-year growth cycle. Tomasello raised the FY24 EPS estimate to $2.04 from $1.56. TREE shares rose 8.4% to $35.37.
February 28, 2024 | 6:30 pm
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LendingTree upgraded to Outperform by Keefe, Bruyette & Woods with a price target raised to $45 from $24, driven by insurance segment growth and SEM advertising. FY24 EPS estimate increased to $2.04.
The upgrade by Keefe, Bruyette & Woods reflects a positive outlook on LendingTree's future earnings, particularly from its insurance segment and SEM advertising. The raised price target and EPS estimate signal strong growth prospects, likely leading to increased investor confidence and a positive short-term impact on TREE's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100