QFIN - LexinFintech stock climbs after Morgan Stanley upgrades to Overweight

sefa ozel/E+ via Getty Images LexinFintech Holdings (LX) stock gains 2.4% in after-hours trading after Morgan Stanley analyst Richard Xu upgrades the stock to Overweight from Equal Weight as he sees reduced regulatory uncertainties for Chinese online lenders. Also cites improved credit quality on economic recovery and better household leverage containment via regulatory efforts. Sees healthy loan volume growth of 30%-40% for LX and for its peer 360 DigiTech (QFIN) and stable pricing. On April 29, Chinese financial regulators held talks with 13 major internet platforms with financial operations and communicated the authorities' focus on implementation and enforcement of existing regulations. For LX, Xu lifts 2021 profit forecast by 9.9% and 2022 profit forecast by 10%; for QFIN, increases profit forecast for 2021 by 7.8% and by 8.6% for 2022. Xu's Overweight rating compares with the Very Bullish Quant rating and the average Wall Street rating of Very Bullish (9 Very Bullish, 3

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LexinFintech stock climbs after Morgan Stanley upgrades to Overweight