LendingTree (TREE) Stock Forecast & Price Target

LendingTree Inc. has revised its FY25 revenue expectations to a range of $1.00-$1.05 billion, exceeding market consensus of $981.2 million and reflecting a strong upward adjustment from the previous forecast. The company also reported a 27% year-over-year profit increase in its Home segment, alongside a robust EBITDA guidance increase to $126-$128 million, indicating improved operational efficiency and profitability. Furthermore, the significant growth in its personal loan business and enhanced free cash flow of $28 million in the third quarter highlight LendingTree's strong market position and solid financial health.

LendingTree Inc. has experienced a decrease in revenue growth momentum in its Home segment, which accounted for 12% of total revenue in the third quarter, showing an 18% year-over-year increase compared to a more robust 26% growth in the prior quarter. Additionally, the company's overall revenue in its home and consumer segments is under pressure, compounded by potential challenges in integrating recent acquisitions that could hinder future growth and profitability. Furthermore, risks associated with increased competition, a rising interest rate environment, and possible macroeconomic headwinds may exacerbate the decline in revenue from the insurance segment, particularly if recovery in the market faces setbacks.