Shares of Qifu Technology (NASDAQ: QFIN) dropped 17.9% to $10.20 on Wednesday following multiple analyst downgrades, extending losses after weaker-than-expected quarterly results and guidance.
The downgrades followed second-quarter results that showed loan volume falling short of forecasts and non-GAAP earnings trailing expectations. The company’s third-quarter earnings guidance midpoint also undershot consensus projections, prompting a reassessment of its near-term outlook.
Morgan Stanley downgraded Qifu Technology to Equal-weight from Overweight, cutting its price target to $13 from $25. Analyst Richard Xu cited prolonged challenges in liquidity and bad debt collection, stating that these pressures would weigh on core operations and third-quarter profit guidance.
Jefferies maintained a Buy rating but reduced its price target to $15.40 from $20.40. Analyst Thomas Chong noted that macroeconomic uncertainties, regulatory tightening and weak industry sentiment would likely continue to impact loan volumes and earnings in the coming quarters. The firm acknowledged Qifu’s early efforts to expand into overseas markets but adjusted its valuation to reflect recent headwinds.
JPMorgan downgraded the stock to Underweight from Neutral with a $9 price target, while Citi moved its rating to Sell from Buy, setting a $8 target—down sharply from its prior $30.10 target. The broad-based downgrades underscore investor concerns over the company’s operational resilience amid a challenging regulatory and macroeconomic environment.
