Jefferies cuts Qifu Technology stock price target on weak results

Jefferies has reduced its price target on Qifu Technology (NASDAQ:QFIN) stock to $15.40 from $20.40, while retaining a Buy rating. This adjustment comes after Qifu Technology's second-quarter results fell short of expectations, with loan volume underperforming forecasts and non-GAAP earnings lagging behind estimates. The company's third-quarter earnings guidance midpoint also trailed market consensus expectations.

Qifu Technology's stock is currently trading at $11.53, significantly below the new price target, and exhibits a low P/E ratio of 1.96 and price-to-book ratio of 0.38. The firm anticipates pressure on loan volume and earnings due to macroeconomic uncertainties, tightening regulations, and industry sentiment in upcoming quarters.

Despite the near-term challenges, Qifu Technology's shares are deemed undervalued, appearing on InvestingPro's list of most undervalued stocks. The price target reduction is attributed to recent headwinds faced by the financial technology company. Jefferies maintains its Buy rating for Qifu Technology, which provides credit-tech services in China, connecting borrowers with financial institution partners.