UBS analyst Eric Wasserstrom upgraded LendingTree Inc. to "buy" from "neutral" due to his expectation of improved mortgage volume positively impacting the company's revenues and adjusted EBITDA.
The sustained growth in consumer digital search for loan products and lenders' increasing use of digital channels to source low-cost leads should benefit the company. As a result, Wasserstrom forecasts "sustained revenue growth and improving EBITDA margins driving strong adjusted EBITDA growth over the next three years."
The price target was raised to $395 from $355. Wasserstrom updated his full-year EPS estimate to $2.99 from $2.86 for 2019 and to $5.69 from $4.35 for 2020.
