Morgan Stanley lowers QFIN-S target price to $25, rating "Overweight"

Morgan Stanley published a research report indicating that the window guidance to lower overall loan interest rates may continue to put pressure on QFIN-S (03660.HK) loan scale and net take rate. Although there is still uncertainty in regulation, it is believed that the company's net take rate is expected to stabilize at around 3%, and dividends and potential capital returns should support the stock price.

The bank has lowered its net profit forecasts for QFIN-S for the next two years by 18.8% and 22.5%, respectively, to reflect lower loan scale and mixed pricing. The target price for QFIN-S (QFIN.US) in the U.S. stock market has been reduced from $34 to $25, with a rating of "Overweight."