Qifu Technology’s Stock (QFIN) Gains Price Target Boost from BofA

Qifu Technology stock (NASDAQ: QFIN) listed on the Nasdaq under the ticker symbol QFIN, are currently trading at $32.40 , down marginally by 0.55% in the pre-market session. Bank of America (BofA) has issued a new price target for the Shanghai-based credit technology firm, indicating a bullish outlook amid the anticipation of Qifu's third-quarter financials.

In a recent note to investors, BofA has revised Qifu Technology’s price target upwards from $34 to $39.35, while maintaining a ‘Buy' rating for the company’s shares. The financial institution projects a rebound in Qifu's business operations, forecasting an increase in new loans and loan balances. Highlighting a high-single-digit and low-single-digit quarter-over-quarter growth respectively for these figures in Q3, BofA signals a reversal of the declining trend observed over the past three quarters.

Qifu Technology, Inc., which rebranded from 360 DigiTech in March 2023, operates the 360 Jietiao brand—a credit-tech platform in China providing a variety of lending services. The company’s headquarters are situated at 7/F Lujiazui Finance Plaza, No. 1217 Dongfang Road, Pudong New Area, Shanghai. It specializes in credit services within the financial services sector. The business model of Qifu extends across various services, including customer acquisition, credit screening, advanced risk assessment, and post-facilitation services for both financial institution partners and consumers.

Qifu Technology boasts a market capitalization of approximately $5.24 billion, with a 52-week price range of $13.71 to $35.23. Currently, its trailing price-to-earnings (P/E) ratio stands at 7.72, with a forward P/E ratio calculated at 5.72. The company offers a dividend rate of $1.18, yielding a return of 3.62% and a payout ratio at 26.16%. In terms of revenue and profitability, the total revenue is reported at $17.09 billion with net income allocated to common shareholders amounting to approximately $4.80 billion. Institutional holdings are substantive, with 68.78% of the shares held by institutions, underscoring significant investor confidence in the firm.

With an aggregate of 13 analyst opinions, the mean target price has been set at $32.17 coupled with a strong buy consensus recommendation (1.5 on the scale). These insights reflect the favorable perception of Qifu Technology’s market position in the credit services industry, as well as its robust growth potential. Against a backdrop of strategic partnerships and technological advancements within the sector, Qifu Technology is poised to leverage these developments to solidify its competitive edge.