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 (NYSE: NOAH) 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.
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