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On Monday, Jefferies analyst Thomas Chong increased the price target for Qifu Technology (NASDAQ: QFIN) shares to $50.00, up from the previous $42.00, while reiterating a Buy rating on the stock. The company, currently trading at $46 with a market capitalization of $7.08 billion, has seen its stock surge nearly 148% over the past year according to InvestingPro data. Chong’s updated assessment followed Qifu Technology’s fourth-quarter results, which showcased non-GAAP earnings surpassing consensus estimates. Additionally, the guidance for first-quarter non-GAAP earnings has a midpoint that exceeds market expectations. The company maintains strong profitability with a 60.88% gross margin and trades at an attractive P/E ratio of 8.72.
Qifu Technology’s performance in the first quarter of 2025 is anticipated to gain from unexpectedly favorable seasonality trends, as per the current visibility. The company’s use of artificial intelligence in various aspects of its operations, including loan application processes, monitoring, collection efforts, and user acquisition strategies, is a contributing factor to its robust performance.
For the full year of 2025, Jefferies has revised upward its non-GAAP earnings and EPADS (Earnings Per American Depositary Share) estimates for Qifu Technology. This revision is attributed to the company’s strong execution and the positive impact of its share buyback program. Chong’s commentary highlighted the company’s effective application of AI technology and solid business execution as key drivers for the upgraded financial outlook.
The analyst’s positive stance on Qifu Technology remains firm, as indicated by the maintained Buy rating. The price target adjustment reflects the analyst’s confidence in the company’s future performance, backed by solid quarterly results and promising guidance for the upcoming quarter. The share buyback program also signals a strong commitment to shareholder value, further cementing the analyst’s favorable view of Qifu Technology’s stock. InvestingPro analysis reveals a "GREAT" overall financial health score of 3.14, with 10+ additional ProTips available for subscribers. Get access to the comprehensive Pro Research Report, part of InvestingPro’s coverage of 1,400+ US equities, for deeper insights into QFIN’s valuation and growth potential.
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