Going Neutral On LendingClub As Valuation Compensates The Cloudy Outlook

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About: LendingClub Corporation (LC)
by: Robbert Manders
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Robbert Manders
Contrarian, fundamental, Value
Summary

Loan data filed with the SEC shows that the number of approved loans is rising and could even top the company's outlook.

The average FICO score of LC's pre-approved loans has declined a bit, which is compensated by a slightly higher interest rate.

The communicated Radius Bank synergies are to be taken with a grain of salt.

At a pro-forma P/TB ratio of 0.75, I continue to value the stock at $5.

The share price of LendingClub (LC) is down another dollar since the last time that I started writing an article about it. Given that my price target has been breached, it is