LendingTree (TREE) Stock Forecast & Price Target

LendingTree Inc. has revised its revenue expectations for FY25 to a range of $1.00-$1.05 billion, surpassing the consensus estimate of $981.2 million, indicating strong growth potential. The company demonstrated financial strength in Q3, generating $28 million in free cash flow, a rise from $25 million in Q2, and reported a 27% year-over-year profit increase in its Home segment, reaching $12 million with a 31% segment margin. Additionally, the upward revision in EBITDA guidance to $126-$128 million, along with an increase in the VMM guidance to $337-$340 million, further supports an optimistic financial outlook for the company.

LendingTree has demonstrated a decline in the growth of its Home segment revenues, which grew 18% year-over-year in 3Q, down from a more robust 26% in the prior quarter, highlighting potential headwinds in this area. Additionally, there are ongoing concerns regarding revenue pressures in the consumer and insurance segments, particularly if market conditions deteriorate, which could adversely affect demand for customer leads. The company's ability to integrate recent acquisitions remains uncertain, and any lag in this process could further hamper revenue growth and overall profitability, contributing to a cautious outlook.