UPDATE: Bank of America Upgrades Noah Holdings Limited to Buy Following 1Q13 Results

In a report published Tuesday, Bank of America analyst Michael Li upgraded the rating on Noah Holdings Limited

from Underperform to Buy, and raised the price target from $7.66 to $8.70. In the report, Li noted, “Noah reported 1Q13 results with non-GAAP net profit of US$10.7mn, up by 194% YoY, accounting for 30% of our pre-earnings FY13 forecast. Net revenue increased by 94% YoY, boosted by both one-time (+67%) and recurring revenue (+116%). Operating margin also improved from 29.8% in FY12 to 36.4% in 1Q13 thanks to better cost control. We believe the company has regained the growth momentum post a tough year in 2012. Upgrade from Underperform to Buy. Raise FY13-14E earnings by 4-9% (FY13E earnings 7% above management guidance of US$37mn) and PO by 14% to US$8.70.” Noah Holdings Limited closed on Monday at $7.90.