Lufax downgraded to Underweight from Overweight at JPMorgan

JPMorgan analyst Katherine Lei double downgraded Lufax to Underweight from Overweight with a price target of $1.60, down from $6.40. Despite macro recovery in China in Q3, Lufax”s profits missed estimates by 48%, Lei tells investors in a research note. The analyst says the company’s “narrative is challenged,” saying Q3 “is not the bottom” as management comments implied profit contraction of 117%-126% year-over-year in Q4. Adding to that, the outlook for 2023 “remains grim,” due to downward pressure on loan growth, take rate and asset quality, writes Lei. She expects the stock to trade at a discount to banks in the coming quarters “while macro uncertainty lingers.”