Lendingtree’s Promising Growth Prospects and Buy Rating Justification

Analyst Melissa Wedel of J.P. Morgan reiterated a Buy rating on Lendingtree (TREE – Research Report), with a price target of $68.00.

Melissa Wedel has given her Buy rating due to a combination of factors that highlight Lendingtree’s promising future growth prospects. The company reported strong fourth-quarter results, surpassing both guidance and consensus estimates in revenue, variable marketing margin, and adjusted EBITDA. This performance sets a positive tone for 2025, with expected revenue and EBITDA growth driven by favorable trends across all business segments, marking a significant shift from previous years.
Furthermore, Lendingtree’s management has projected a 12% year-over-year revenue increase at the midpoint for 2025, supported by growth in all three segments. The company’s diversified platform and flexible expense structure position it well to capitalize on these trends. Additionally, the scaling of SPRING, formerly MyLendingTree, is anticipated to contribute to incremental revenue growth. These factors, combined with an increased price target of $68, imply a significant potential total return, justifying the Buy rating.

In another report released today, KBW also maintained a Buy rating on the stock with a $66.00 price target.