Shares of Qifu Technology (NASDAQ:QFIN) plunged 17.9% on Wednesday after a string of analyst downgrades and marked reductions to price targets. The moves followed the company’s second-quarter reporting, which featured loan volume and non-GAAP earnings that fell short of analyst forecasts, and third-quarter earnings guidance that arrived below consensus.
Analyst changes and revised targets
- Morgan Stanley’s Richard Xu moved his rating from Overweight to Equalweight and cut his price target to $13.00 from $25.00. Xu said: "Challenges from liquidity and bad debt collection in the sector will pressure Qfin’s core operations, which led to weak 3Q26 profit guidance. We lower our price target and move to Equalweight in view of prolonged challenges."
- Jefferies’ Thomas Chong kept a Buy rating but lowered his price target to $15.40 from $20.40. Chong noted the company’s 2Q results showed loan volume below forecasts and non-GAAP earnings behind expectations, and that the mid-point of 3Q guidance lagged consensus. He added that loan volume and earnings are expected to face headwinds from macro uncertainties, tightening regulations and weaker industry sentiment, while the company is in the early stages of developing overseas markets.
- JPMorgan’s Katherine Lei downgraded QFIN from Neutral to Underweight with a $9.00 price target.
- Citi’s Judy Zhang shifted her rating from Buy to Sell and reduced the price target to $8.00, down from $30.10.
Underlying results and guidance
The analyst revisions followed Qifu’s second-quarter results, which showed lower loan origination volume and non-GAAP earnings that did not meet consensus forecasts. Management’s guidance for the third quarter was also weaker than the market expected, a point cited by several analysts when revising valuations and recommendations.
Market reaction
Investors responded sharply to the analyst moves and the company’s reported metrics, sending the stock down nearly 18% on the day. The downgrades, together with softer-than-expected operating metrics and guidance, formed the immediate rationale cited by the brokers.
Context and next steps
Analysts who reduced valuations referenced sector-level challenges - specifically liquidity and bad-debt collection - as key pressures on Qifu’s core operations. Jefferies also highlighted macro uncertainty, regulatory tightening and industry sentiment as factors likely to influence loan volumes and earnings in coming quarters. The company’s efforts in overseas markets were described as early-stage, suggesting a longer timeline for meaningful contribution.
Note on coverage: The article reports analyst ratings, price targets and company disclosures as stated by the brokers and Qifu’s reported quarterly results and guidance.