JPMorgan sets Noah Holdings stock target to $12 from $10.50

Published 05/03/2025, 11:14
JPMorgan sets Noah Holdings stock target to $12 from $10.50

On Wednesday, JPMorgan resumed coverage on shares of Noah Holdings Ltd . (NYSE: NYSE:NOAH), a leading wealth and asset management service provider in China with a market capitalization of $720 million. The firm issued a Neutral rating on the stock, adjusting the price target to $12.00, up from the previous target of $10.50. According to InvestingPro data, the stock currently trades at $10.89, with analyst targets ranging from $10.48 to $14.97.

The change in price target reflects JPMorgan’s assessment of Noah Holdings’ ongoing strategic shift aimed at expanding its international business while optimizing its operations within China. InvestingPro data confirms this challenging transition, showing an 18.6% revenue decline in the last twelve months, though the company maintains strong financial health with a current ratio of 4.43, indicating ample liquidity to support its transformation.

The firm notes that despite the company’s efforts to grow its overseas business, the decline in domestic revenue has been more significant than the gains from international expansion. JPMorgan acknowledges the company’s progress in its strategic pivot but anticipates that the challenges resulting from this shift will likely continue to affect the company’s short-term performance.

JPMorgan’s commentary on the situation highlights that while Noah Holdings may face continued difficulties in the near term, the company’s broader transformation could lead to a more solid fundamental recovery over time. However, given the current landscape and financial results, JPMorgan has opted to maintain a cautious stance with the Neutral rating.

The updated price target of $12.00, which is set for December 2025, suggests that JPMorgan sees potential for Noah Holdings’ stock value to increase from its previous target but remains reserved in its expectations due to the company’s recent financial performance and ongoing strategic changes. Trading at a P/E ratio of 10.15 and offering a significant 9.52% dividend yield, the stock presents interesting metrics for value investors. For deeper insights into Noah Holdings’ valuation and growth potential, including exclusive Fair Value analysis and 7 additional ProTips, check out the comprehensive research available on InvestingPro.

In other recent news, Noah Holdings Limited announced the resignation of Mr. Kai Wang from his position as a non-executive director. The resignation is effective immediately, and Mr. Wang has decided to focus more on his other commitments. The company assured that his departure is amicable and there are no unresolved issues that need to be disclosed to the shareholders. Noah Holdings emphasized that this change will not impact the Board’s operations or the company’s business continuity. The Board expressed gratitude for Mr. Wang’s contributions during his tenure. As of now, details regarding a successor or any changes to the Board’s composition have not been disclosed. This information was released through a statement from a SEC filing by Noah Holdings.

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