LX - LexinFintech slides after Citi downgrades stock on Q1 results guidance

U.S.-listed shares of LexinFintech (NASDAQ:LX) have lost 13.7% to $2.05 in Tuesday morning trade, after the Chinese fintech company's stock was downgraded to neutral from buy by Citi following its Q1 2022 results. LX late on Sunday reported a fall in Q1 total loan originations, operating revenue and non-GAAP EBIT. It also said it expected Q2 loan origination volume to be higher than Q1, while keeping its guidance for 10% Y/Y growth this year unchanged. Citi analysts Julia Cheung, Judy Zhang and Alan Kuang attributed the fall in quarterly loan origination volume to several factors, including seasonality impact from Chinese New Year holidays, LX's tightened credit assessment, and dampened consumer sentiment amid China's COVID resurgence. "In the first quarter, the loan origination volume reached RMB 43.2 billion and the outstanding loan balance RMB 83.8 billion. To be honest, we're not pleased with the quarterly results. We have the potential to do more,"

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LexinFintech slides after Citi downgrades stock on Q1 results, guidance