Qudian price target lowered to $24 from $36 at Macquarie
Macquarie analyst Dexter Hsu lowered his price target for Qudian shares to $24 after Ant Financial asked the company and its peers to cap the annual percentage rate at 24%, below the 34% charged by Qudian, from the end of this month if they would like to stay in the ecosystem. While Alipay still accounts for two-thirds of Qudian's loans facilitated, the impact could be smaller than expected since the company has been directing users to its own app, where the annual percentage rate will stay at 36%, Hsu tells investors in a research note. Nonetheless, he cut his 2017, 2018, 2019 and 2020 earnings estimates by 8%, 23%, 32% and 39%, respectively. The analyst keeps an Outperform rating on Qudian shares.