NOAH - Noah downgrade at JPMorgan on lackluster growth pushes stock down 11%

Noah (NYSE:NOAH) trades 11.4% down after it was downgraded to Neutral from Overweight (maintained PT at $50) at JPMorgan as analyst Katherine Lei finds the company's "lackluster" growth disappointing after its Q3 results. YTD, the stock has lost 7.8% while in the past 1-month it gained 15.3%; net income narrowed 4.3% Y/Y and 10.6% Q/Q while revenue reported a 5.8% Y/Y growth and 1.1% increase Q/Q. Client growth remains steady but wallet share probably shrank, Lei said in a report; based on current guidance, she expects Q4 net profit to disappoint by falling anywhere from 17% to 55%. As of Sep.30, total number of registered clients increased 16% Y/Y to 406,420; total number of Q3 active clients, which excluded mutual fund-only clients, recorded 25.5% Y/Y increase. For FY21, the company estimates non-GAAP net income attributable to Noah shareholders to be in the range of RMB1.2 to RMB1.3B. "Barring meaningful acceleration in profit growth, multiple

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Noah downgrade at JPMorgan on lackluster growth pushes stock down 11%