Needham & Company Reiterates Buy on LendingTree (TREE) Following Recent Weakness

Needham & Company reiterated a Buy rating and $108.00 price target on Tree.Com (NASDAQ: TREE) following recent share weakness. Analyst Kerry Rice believes that the weakness is largely related to Prosper's recent acquisition of BillGuard. Rice believes that the price weakness presents a buying opportunity.

Rice commented, "We view recent weakness in LendingTree's shares as a buying opportunity. We believe the weakness is largely related to Prosper's recent acquisition of BillGuard. However, we believe there is little risk to our estimates for TREE, and we think the acquisition could lead to incremental revenue opportunities with Prosper. Overall, we believe TREE's fundamentals remain intact as the demand for personal loans continues to grow. We also expect incremental Mortgage growth due to Tree's recently launched call center and Loan Directory and Local Introductions products. Finally, we believe the company's laser focus on lifting conversion rates across its products, via new products and technology innovations, should serve as a flywheel to drive incremental marketing spend from its lender partners."

For an analyst ratings summary and ratings history on Tree.Com click here. For more ratings news on Tree.Com click here.

Shares of Tree.Com closed at $96.13 yesterday.

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