Truist has adjusted its price target for LendingTree (TREE, Financial), reducing it from $72 to $60, while maintaining a Buy rating on the stock. This decision follows the company's first-quarter results and future outlook, which Truist characterizes as "mixed." Despite this adjustment, the firm remains optimistic about LendingTree's prospects due to its extensive scale and diverse revenue streams.
Truist sees LendingTree as an appealing investment opportunity, particularly as the insurance sector shows signs of recovery. Over time, normalization in interest rates is expected to bolster the Home and Consumer segments as well. Additionally, the firm's analysis highlights that LendingTree's financial standing is robust enough to sustain ongoing business operations effectively.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for LendingTree Inc (TREE, Financial) is $63.67 with a high estimate of $70.00 and a low estimate of $60.00. The average target implies an upside of 47.31% from the current price of $43.22. More detailed estimate data can be found on the LendingTree Inc (TREE) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, LendingTree Inc's (TREE, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for LendingTree Inc (TREE, Financial) in one year is $42.92, suggesting a downside of 0.69% from the current price of $43.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the LendingTree Inc (TREE) Summary page.
TREE Key Business Developments
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- All three business segments of LendingTree Inc (TREE, Financial) generated solid revenue growth in the first quarter.
- The insurance segment grew revenue by 71% year over year, despite facing challenges.
- The small business and personal loan products in the consumer segment showed significant growth, with expectations for record revenue in 2025.
- Home equity lending continues to perform well, driven by increased demand from both consumers and lenders.
- The company has identified cost savings through a zero-based budgeting process, which will help offset unexpected expenses.
Negative Points
- Adjusted EBITDA came in below forecast due to temporary regulatory headwinds in the insurance business and one-time expenses.
- The recovery in the insurance segment has been slower than anticipated, affecting performance.
- Prevailing high mortgage rates continue to suppress demand for new home buyers and refinancing.
- There is concern about potential headwinds to profitability from tariffs, which could impact demand for customer acquisition.
- The student loan business has been declining, and LendingTree Inc (TREE) is not actively marketing it due to low demand.
