Citizens is moving off the sidelines when it comes to LendingClub . The bank upgraded the personal lender to market outperform from market perform. Analyst David Scharf established a price target of $23, implying that shares of LendingClub could rise 27%. Scharf’s upgrade follows LendingClub’s Investor Day on Nov. 5. The company provided more clarity of entry into a new asset class, funding channels and deposits, stable credit performance and materials growth drivers. LC YTD mountain LC YTD chart “Management’s commentary gave us more confidence in the significant origination growth outlook and the corresponding better scale in the business in the coming years,” Scharf wrote. “The company also discussed various newer product categories that are currently scaling, providing confidence it will be able to expand beyond its core credit card refinancing business. Given these trends, we are more confident in the growth runway and are constructive on shares at current levels.” The analyst added that LendingClub’s cautious stance on credit had also been keeping him on the sidelines. But a healthy and resilient U.S. consumer has boosted LendingClub’s credit performance, resulting in Scharf’s higher conviction in the name. LendingClub could also benefit from a favorable industry backdrop, with higher competitive pressure — as Scharf had previous expected — failing to materialize. The analyst also applauded the company’s strong funding and marketplace demand, alongside its capital actions, such as a planned $100 million share buyback plan. “Capital actions have begun following the start of significant capital generation, driving better share performance,” he wrote. “We note the company has reached a level of scale, as well as stable credit performance, that has led to excess capital generation, and with LC beginning to return capital, we see significant upside from further capital actions.” LendingClub stock has added 12% in 2025.
