LendingClub (LC) Stock Forecast & Price Target

LendingClub Corp is positioned for growth in the personal loan market, which has expanded at an approximately 14% CAGR over the past 15 years, with a projected 32% year-over-year increase in loan originations for 2025. The company is expected to see significant earnings growth, with projected EPS growth of around 150% this year, alongside anticipated margin expansions of 260 basis points in 2026 and 390 basis points in 2027, potentially driving over $2 in per-share earnings by 2027. Additionally, LendingClub's strong capital position, highlighted by an expanding CET1 capital ratio of 18%, alongside its ability to capture market share from tightened credit card underwriting, emphasizes a favorable outlook for the company in the coming years.

LendingClub Corp's financial outlook is negatively impacted by credit provisions that fell 4% below consensus expectations, accompanied by non-performing asset losses of 2.85%, which are notably lower than long-term underwriting levels. The company's origination volume remains significantly reduced compared to two years ago, indicating constrained marketplace lending that could lead to underperformance in earnings per share (EPS). Additionally, the firm has experienced a decrease in market share, dropping from approximately 10% to the mid-single digits due to portfolio stress from previous lending vintages and heightened credit tightening measures that began in late 2022.