NEW YORK, NY / ACCESSWIRE / April 7, 2016 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has initiated coverage on IEG Holdings Corporation (OTCQX: IEGH) with a price target of $10.55.
The report is available here: IEGH Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will be available on these platforms. The firm also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
IEG Holdings Corporation (OTCQB: IEGH) provides online unsecured consumer loans under the brand name "Mr. Amazing Loans" via its website, www.mramazingloans.com, in 17 US states. The Company offers $5,000 personal loans over a five-year term at 23.9% to 29.9% APR. IEG Holdings plans future expansion to a total of 25 US states. The Company launched US operations in 2010 and is headquartered in Las Vegas, Nevada. Since 2013, IEGH has obtained additional state lending licenses, and they are now licensed and originating direct consumer loans in Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Missouri, Nevada, New Jersey, New Mexico, Oregon, Pennsylvania, Texas, Utah and Virginia. In 2015, IEGH began offering only $5,000 loans over a five-year term via online application.
"IEGH serves in the highly fragmented consumer installment lending industry. IEGH is able to serve this underbanked market without the substantial costs of an extensive branch network by leveraging their online lending platform to provide distribution. Consumers are increasingly shifting to online services, and we believe IEGH is well positioned to capitalize on this expanding online personal loan opportunity. IEGH has differentiated from traditional personal loan businesses by utilizing this online lending platform. Currently, IEGH gained licensing in 17 states and will continue to obtain additional licenses to propel long term growth and diversification," stated Ajay Tandon, CEO of SeeThruEquity. "We are initiating coverage with a 12-month price target of $10.55 per share."
Additional highlights from the report are as follows:
Large and growing market of underbanked consumers
According to the report of Federal Deposit Insurance Corporation, 7.7% of households in the United States-nearly 9.6 million households- were unbanked in 2013. Short term credit, reported by the Center for Financial Services December 2015, grew 37% from 2012 to 2014, while single payment credit rose only 0.1% over the same period. Moreover, regulatory agencies are anticipated to alter the feasibility of offering loans that are due in one lump sum. Shifts in the consumer lending industry suggest that total revenue for short-term credit products, estimated at $29 billion in 2014, will soon outpace that of single payment credit products, estimated at $38 billion in 2014.
Cost-effective and scalable business strategy
IEGH serves in the highly fragmented consumer installment lending industry. IEGH is able to serve this underbanked market without the substantial costs of an extensive branch network by leveraging their online lending platform to provide distribution. Consumers are increasingly shifting to online services, and we believe IEGH is well positioned to capitalize on this expanding online personal loan opportunity. IEGH has differentiated from traditional personal loan businesses by utilizing this online lending platform. Currently, IEGH gained licensing in 17 states and will continue to obtain additional licenses to propel long term growth and diversification.
Strong competitive advantages and sustainable business model
The total addressable market in the large personal and payday loan space presents an opportunity for significant growth and expansion. IEGH is well positioned to take considerable share of this market given that its full online loan distribution model enables IEGH to offer loans in the 17 states they are approved by regulators. State licensure acts as a barrier to entry into the consumer loan market, and effectively provides a moat for IEGH.
Please review important disclosures at www.seethruequity.com.
About IEGH Holdings Corp
IEG Holdings Corporation (OTCQB: IEGH) provides online unsecured consumer loans under the brand name "Mr. Amazing Loans" via its website, www.mramazingloans.com, in 17 US states. The Company offers $5,000 personal loans over a five-year term at 23.9% to 29.9% APR. IEG Holdings plans future expansion to a total of 25 US states. The Company launched US operations in 2010 and is headquartered in Las Vegas, Nevada.
For more information, please visit the Company's website at www.investmentevolution.com.
About SeeThruEquity
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. The company does not conduct any investment banking or commission based business. SeeThruEquity is approved to contribute its research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute its research to its database of opt-in investors. The company also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit www.seethruequity.com.
Contact:
Ajay Tandon
SeeThruEquity
info@seethruequity.com
SOURCE: SeeThruEquity
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