Shares of Qifu Technology Inc. (NASDAQ: QFIN) fell 17.9% to $10.20 on Wednesday after multiple Wall Street analysts downgraded the stock following weaker-than-expected second-quarter results and a conservative third-quarter earnings outlook.
Morgan Stanley’s Richard Xu downgraded QFIN from Overweight to Equalweight and slashed the price target to $13 from $25, citing prolonged challenges in liquidity and bad debt collection that are expected to weigh on core operations. Xu pointed to the company’s weak third-quarter profit guidance as a key driver for the downgrade.
Jefferies’ Thomas Chong maintained a Buy rating but reduced the price target to $15.40 from $20.40. Chong noted that second-quarter loan volume and non-GAAP earnings missed forecasts, while the midpoint of third-quarter guidance fell short of consensus. He also highlighted macroeconomic uncertainties, regulatory tightening and industry sentiment as headwinds for the quarters ahead, while acknowledging QFIN’s early-stage expansion into overseas markets.
JPMorgan’s Katherine Lei downgraded the stock from Neutral to Underweight with a $9 price target, while Citi’s Judy Zhang moved the rating from Buy to Sell and cut the target to $8 from $30.10. The broad-based analyst actions reflect growing concerns over QFIN’s near-term operational performance and valuation amid a challenging macro and regulatory environment.
QFIN reported second-quarter results that showed loan volume and non-GAAP earnings trailing analyst projections, compounding investor unease. The company’s third-quarter guidance midpoint also undershot market expectations, reinforcing skepticism over its ability to rebound in the current climate.
The stock’s decline follows a broader pullback in the fintech sector, where lenders have faced margin compression and rising credit costs. Analysts now expect QFIN’s overseas expansion efforts to face additional hurdles as regulatory scrutiny intensifies and consumer demand softens in key markets.
The company did not immediately respond to requests for comment on the downgrades or revised guidance.
