LendingTree (TREE) Stock Forecast & Price Target

LendingTree Inc. has raised its FY25 revenue guidance to $1.00-$1.05 billion, reflecting a positive outlook as it surpasses prior estimates and consensus expectations. The company's free cash flow increased to $28 million in Q3, up from $25 million in Q2, indicating a strengthening financial position. Additionally, the Home segment demonstrated robust growth with a 27% year-over-year profit increase to $12 million, alongside improved EBITDA guidance, showcasing the company's ability to enhance profitability across its segments.

LendingTree's stock outlook may be negatively impacted by the pressure on revenue in its Home and Consumer segments, which continue to face challenges, particularly with the Home segment showing a decline in growth rate from 26% year-over-year in 2Q to 18% in 3Q. The company's ability to integrate acquisitions swiftly is uncertain, which raises concerns about potential impacts on revenue growth and profitability. Furthermore, the insurance segment's performance could deteriorate if broader market recovery stalls, negatively affecting demand for customer leads, thus compounding the risks associated with increased competition and a rising interest rate environment.