Noah Holdings: JP Morgan downgrades to 'neutral' on slowing growth

Noah Holdings

15/03/2019 06:33

** JP Morgan downgrades Noah Holdings  NOAH.N  to "neutral"
from "overweight," on slowing growth
    ** Analyst Katherine Lei cites disappointing wealth
management business and drop in asset management fee rate in Q4
2018 among reasons for the downgrade
    ** JPM cuts the wealth management service provider's
2019/2020 earnings estimates by 4 pct-8 pct to reflect weaker
business fundamentals, says still likes the industry and the
company in the long run
    ** In a note titled "Growth engine is slowing down," Lei
says against backdrop of intensifying competition, NOAH needs to
revamp its product strategy and stabilise or optimise its
professional workforce (i.e. relationship managers and
investment team)
    ** Lei, rated 5-star for recommendation accuracy as per
Refinitiv data, cuts PT to $52 from $55
    ** Of 6 analysts covering the stock, 3 rate "strong buy" or
"buy", remaining 3 rate "hold"; median PT $53.15 - Refinitiv
data
    ** Stock up 5.7 pct YTD
        

 (Reporting By Geetha Panchaksharam)
 ((geetha.panchaksharam@thomsonreuters.com))