Analysts Say LendingTree's 25% Selloff Is Unjustified
After initially moving higher in Tuesday's post-market session, LendingTree shares have since tumbled more than 20 percent. While traders are attributing the intraday downside to concerning comments coming from a company exec during a presentation Wednesday morning at the Needham Growth Conference, not everyone agrees with this attribution.
No Clear Commentary During Presentation
Traders suggested the executive comments were related to mortgage originations; when the Benzinga Newsdesk listened to the presentation, however, comments which were clearly negative could not be found.
Elsewhere around Wall Street, two notable analysts shared a similar sentiment.
Bob Peck: Downside Creates Buying Opportunity
SunTrust's Bob Peck said, in a mid-day research note, the downside has created a buying opportunity. He said the concerns were "unfounded."
Peck spoke with management and maintains that LendingTree's underlying business fundamentals are solid. He reiterated a $150 price target on the stock with a Buy rating.
Khorsand: Street Is Getting This Wrong
BWS Financial's Hamed Khorsand told Benzinga he felt "the Street got it wrong," suggesting he didn't think the sharp decline in the stock over the intra-day session was justified.
Company Not Aware Of Reason For Decline
Also of note, LendingTree itself is not aware of any reason for the stock's decline on Wednesday. According to Bloomberg, the company cannot attribute the selloff to a specific catalyst.
Shares of LendingTree last traded at $65.44, down more than 24 percent for the session.
Latest Ratings for TREE
|Oct 2016||Loop Capital||Maintains||Buy|
|Aug 2016||Loop Capital||Initiates Coverage on||Buy|
|Jun 2016||Compass Point||Initiates Coverage on||Buy|
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