LendingClub price target lowered to $13 from $15 at Compass Point

Compass Point lowered the firm’s price target on LendingClub to $13 from $15 and keeps a Buy rating on the shares after updating estimates going into Q3 earnings. While reducing its price target, the firm believes the pullback in shares is “overdone” given it believes LendingClub is “one of the best positioned to benefit from a strong NIM inflection” and stabilization/recovery in marketplace volumes and economics. The firm also believes LendingClub should be able to initiate a share repurchase program in early FY24 after the company’s three year minimum capital ratio commitments post bank acquisition expire, the analyst tells investors.