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LendingClub Could Increase Operating Income At Least 5x By FY24

Nov. 02, 2021 12:02 PM ETLendingClub Corporation (LC)OPFI, UPST85 Comments
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Siyu LI


  • LendingClub pivoted to a hybrid lending model since it acquired Radius Bank in 2020.
  • Its pivot presents superior unit economics and a more flexible business model that can handle macroeconomic headwinds better.
  • Despite its 300%+ YTD price appreciation, it has more upside potential.

LendingClub headquarters in Silicon Valley.

Michael Vi/iStock Editorial via Getty Images

Investment Thesis

Since acquiring Radius Bank and becoming a bank holding company, LendingClub (NYSE:LC) pivoted its business model from a pure P2P lender to a hybrid one that leverages its combined strengths

lendingclub price Chart
Data by YCharts

This article was written by

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I am a fundamental-driven analyst. I read sec filings/call script/ppt, study competitors, try out products, keep track of key personnel - leave no stone unturned to build rock-solid convictions. -------------------------------- I look for 3 types of companies. Misunderstood underdogs - power players mispriced for wrong reasons. Some past picks include H&R Block ($HRB)Turnaround stories - they failed before, hated, and still being ignored by investors, despite coming back like a champion. Recent picks include: Deutsche Bank ($DB), and United Natural Food ($UNFI)True innovators - they are category creators and pioneers, they grow where innovation thrives. Past picks include Roku ($ROKU). --------------------------------I am a generalist and am aware no matter how much I study a company, there are always investors out there in the SA community, who know a lot more than I do. They keep me stay humble and stay hungry. --------------------------------I am a practitioner of Ray Dalio's principles, an admirer of Peter Lynch's pragmatic style, and a follower of Howard Marks' wisdom.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of LC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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