Update shared on 15 Dec 2025
Analysts have nudged their price target on LendingTree higher, reflecting a roughly 15 percent upside from prior levels as they point to broad based double digit growth across all segments, particularly in personal loans and insurance, improved operating leverage, and a more favorable outlook as interest rates normalize.
Analyst Commentary
Bullish analysts highlight that LendingTree's recent quarter underscores the durability of its recovery, with double digit growth across personal loans and insurance reinforcing confidence in the sustainability of higher earnings power and supporting recent price target increases.
Some of the most optimistic views also come from read throughs into adjacent businesses, where strong performance in LendingTree's credit and insurance traffic is being cited as evidence of robust demand for digital financial marketplaces. In turn, this supports higher valuation multiples based on faster than expected revenue growth.
JPMorgan's decision to raise its price target to the low $80s, while reiterating an Overweight rating, is viewed as confirmation that execution is tracking ahead of prior expectations. The upgraded outlook across all segments is likely to drive upward revisions to Street estimates if momentum is maintained into coming quarters.
At the same time, analysts are closely watching whether the current pace of new credit card and loan originations, which has been a key driver of upside in related platforms such as Credit Karma, can remain resilient if macro conditions soften or if competitive marketing spend intensifies. These factors could create pressure on customer acquisition efficiency and, by extension, on justified valuation levels.
Many institutional investors are also focused on how effectively LendingTree can convert its improved operating leverage into consistent free cash flow growth and shareholder returns. They note that any missteps in cost discipline or capital allocation could temper the enthusiasm reflected in recent target hikes.
Given these crosscurrents, the debate on the stock is increasingly centered on whether current expectations already discount a full normalization of the rate environment and continued broad based growth, or whether there is still room for meaningful upside as execution continues to outpace the wider lending ecosystem.
What's in the News
- The board approves amendments to LendingTree's bylaws to modernize shareholder meeting practices, update nomination and proposal rules, align officer titles with the current management structure, and reflect recent Delaware corporate law changes, with the goal of strengthening governance and administrative efficiency (company filing).
- The company reports it has completed its long-running share repurchase program announced in 2014, retiring nearly 2 million shares in total for approximately $254 million, with no shares bought back in the most recent tranche period (company disclosure).
- LendingTree updates its outlook, guiding fourth-quarter 2025 revenue to a range of $280 million to $290 million and full-year 2025 revenue to between $1.08 billion and $1.09 billion (company guidance).
- Following the unexpected death of longtime Chief Executive Officer Doug Lebda in an all-terrain vehicle accident on October 12, 2025, the board appoints Chief Operating Officer and President Scott Peyree as the new CEO, effective immediately (company announcement).
Valuation Changes
- Fair Value Estimate remains unchanged at approximately 81.33 per share, indicating no revision to the intrinsic value assessment.
- The Discount Rate has risen slightly from about 9.21 percent to 9.30 percent, reflecting a modest increase in the assumed risk profile or cost of capital.
- Revenue Growth is effectively unchanged at roughly 5.45 percent, suggesting stable expectations for top line expansion.
- Net Profit Margin is essentially flat at around 5.92 percent, indicating no material change in long term profitability assumptions.
- Future P/E has edged higher from about 20.18x to 20.23x, implying a marginally higher valuation multiple on forward earnings.
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