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Lufax Holding Ltd (LU)

NYSE - Nasdaq Real Time Price. Currency in USD
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15.88+1.83 (+13.02%)
At close: 4:00PM EST

15.98 +0.10 (0.63%)
After hours: 5:22PM EST

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Neutralpattern detected
Previous Close14.05
Open14.25
Bid15.91 x 800
Ask15.95 x 2200
Day's Range14.23 - 16.25
52 Week Range11.56 - 20.17
Volume10,614,879
Avg. Volume8,122,507
Market Cap40.515B
Beta (5Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target EstN/A
  • IPOs to watch in 2021: The 5 most anticipated debuts
    Yahoo Finance

    IPOs to watch in 2021: The 5 most anticipated debuts

    2020 was a banner year for U.S. IPOs even amid a global pandemic and financial crisis. Momentum will continue into 2021, with the hotly anticipated debuts of Roblox and Affirm.

  • Goldman Sachs Says These 3 Stocks Could Surge Over 30% From Current Levels
    TipRanks

    Goldman Sachs Says These 3 Stocks Could Surge Over 30% From Current Levels

    After a true annus horribilus, we’re all ready for better times. The US equity strategy team at Goldman Sachs, led by David Kostin, sees those better time ahead, and in the near-term. The team is predicting a 25% gain for the S&P 500 within the next 24 months – or to put it in absolute numbers, they believe the index will hit 4,600 by December 2022. Kostin lays out four clear reasons for believing that we’re at the start of another prolonged bull run. First, he notes the generally improving economic conditions; second, he points out corporate earnings growth; third, are the historically low interest rates, as the Fed sticks to its near-zero rate policy; and finally, there’s TINA, or ‘there is no alternative.’ Stocks are entering a virtuous circle, Kostin believes, as they offer the highest returns available for now.In a recent interview, Goldman’s chief equity strategist said of these points, “That's the story, it's about an economy that's getting better, coming off the pandemic, and generally getting better, and the Fed on hold. All of that is to the positive and I think the market is recognizing that and will continue to do that.”Goldman Sachs analysts are following Kostin’s lead, and pointing out three stocks that they think will gain from the general market rise. We ran the trio through TipRanks database to see what other Wall Street's analysts have to say about them.Lordstown Motors (RIDE)The first Goldman's choice is Lordstown Motors. This Ohio-based company, closely linked to Big 3 standard General Motors, is an electric vehicle maker. The company works out of the GM’s old Lordstown, Ohio assembly plant, which it purchased last year. Lordstown boasts over 6.2 million square feet of production floor space, and a capacity of 600,000 vehicles per year. The company’s flagship vehicle is the all-wheel drive Endurance pickup truck. The vehicle is based on a unique design, using individual electric motors at each wheel hub. The Endurance is scheduled for delivery in the fall of 2021.Founded in 2018, Lordstown Motors went public earlier this year through a merger with a ‘blank check’ company. These transactions are designed to provide capital for companies looking to enter the public market. As part of preparations for releasing its Endurance truck, Lordstown has entered into an agreement with Camping World Holdings (CWH), the RV maker. Camping World will train its mechanics on the new truck, and provide garage floor space for Lordstown’s customers. The agreement includes potentials for expansion, such as sharing sales, space and providing electric drive systems for RVs.Covering this stock for Goldman Sachs, analyst Mark Delaney writes, “We believe this collaboration is a first step to address Lordstown’s service footprint and charging infrastructure, and we view Lordstown’s decision to leverage an existing service footprint as a cost effective strategy… we believe that the broader customer experience, including service and charging, plays a significant role in product differentiation and can help EV start-ups to be successful. In our view, the ease and reliability of maintenance and charging is particularly important to Lordstown’s fleet/commercial customer base, which is focused on vehicle up-time.”In line with these comments, Delaney rates RIDE shares a Buy along with a $31 price target for the next 12 months. At current levels, that implies a 67% upside potential. (To watch Delaney’s track record, click here)Overall, RIDE shares get a Hold from the analyst consensus, reflecting Wall Street caution toward a new – and highly speculative – endeavor. The rating is derived from 4 recent reviews, evenly split between 2 Buys and 2 Sells. However, the $27.50 average price target suggests that RIDE has a 48% upside for the year ahead. (See RIDE stock analysis on TipRanks)Liberty Global (LBTYA)Next up is Liberty Global, a holding company in the telecom sector. Liberty has a global presence with operations in seven European countries: the UK, the Netherlands, Ireland, Belgium, Poland, Slovakia, and Switzerland. The company boasts annual revenues in excess of $11 billion.Through its subsidiaries, Liberty serves over 11 million customers with a combined 25 million subscriptions to broadband internet, TV, and telephone services. The company also claims 6 million mobile and wifi subscribers. Liberty is a leading investor in European digital and online infrastructure projects.Among the company’s recent moves was the acquisition of Swiss telecom provider Sunrise Communications last month. With completion of the transactions, Liberty Global now owns over 98% of Sunrise’s total share capital, making the Swiss company of a wholly owned subsidiary of Liberty Global Group.Goldman Sachs analyst Andrew Lee, in an extensive review of Liberty’s current business and market position, points out the Swiss acquisition as a key factor for the company’s future. He writes, “We view Sunrise as a quality asset, with sustained market share growth potential. We expect this to benefit LBTYA directly as Sunrise continues to win share from Swisscom but also to help stabilize the UPC asset.”Lee gives LBTYA shares a Buy rating along with a $33 price target. This figure implies ~36% one-year upside from current levels. (To watch Lee’s track record, click here)Like RIDE above, Liberty has an even split among its recent reviews – in this case, 3 Buys and 2 Holds, making the analyst consensus view a Moderate Buy. The shares are priced at $24.32, and the average price target of $30.12 indicates room for ~24% growth from that level. (See LBTYA stock analysis on TipRanks)Lufax Holding (LU)Fintech is a rapidly growing niche, and Lufax operates a personal financial services platform serving the Chinese market. The company provides wealth management for the fast-growing middle class in China, a population that is not only growing in size but also in affluence. Lufax offers financing solutions for personal and business loans to this population, which is not always well-served by China’s established banking sector. The company’s customer base includes small business owners and salaried workers.Revenue for the third quarter, reported earlier this month, came in at $2 billion in US currency. The EPS of 24 cents beat the estimates by 10 cents, or 71%. These numbers were down year-over-year, however.The key uncertainty facing Lufax at the present is state regulation. China’s government, while permitting a market-based economy, keeps a tight grip on economic activity generally, and modern, cutting edge companies like Lufax can run afoul of regulators who are sometimes uncomfortable with the digital world. The prospect of tighter regulation, as government officials seek to impose controls on fintech, has some investors worried.After an extensive review of the Chinese tech regulatory environment, Goldman’s Elsie Cheng, who covers Lufax, noted: “We remain constructive on Lufax’s capability to navigate through the continually evolving regulatory environment and deliver consistent value-add to its consumers/financial partners.”In light of that, Cheng rates LU a Buy alongside a $20 price target, which implies a 34% upside for the year ahead. (To watch Cheng’s track record, click here)All in all, the Moderate Buy analyst consensus rating on Lufax is based on 7 reviews, including 4 Buys and 3 Holds. The average price target of $17.70 indicates a potential 15% upside next year. (See LU stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

  • China’s Fintech Giants Scramble to Rethink IPOs, Raise Cash
    Bloomberg

    China’s Fintech Giants Scramble to Rethink IPOs, Raise Cash

    (Bloomberg) -- Jack Ma’s vision of the future of finance in China is being upended by regulators, along with the ambitions of conglomerates that followed his lead.Ma’s Ant Group Co. is in talks with regulators about injecting capital into its micro-lending units just weeks after its $35 billion initial public offering was halted in a sector-wide crackdown. The listing plans of e-commerce billionaire Richard Liu’s JD Digits Technology Holding Co. have also been thrown into limbo. Lufax Holding Ltd. had to renegotiate terms with some shareholders after its recent IPO valued China’s largest listed online lender at less than a previous funding round.The details come from people familiar with the discussions, who asked not to be identified speaking on private matters.It’s all part of the rapidly shifting landscape for China’s fintech leaders, which till recently offered the most compelling evidence of technology giants using their might -- and a light regulatory touch -- to rewire traditional financial services. They are now rushing to shore up capital, mulling business overhauls and bracing for more turbulence as industry watchdogs set their sights on areas spanning lending, banking partnerships and data privacy.“Financial stability is political in China,” said Sean Ding, a Washington DC-based analyst at Plenum, a research firm specializing in Chinese politics and economy. “The whole point of sending such a strong message is for future fintech companies to be more careful, understand that their products can bring about financial risk.”The call for tightened oversight comes from the very top. President Xi Jinping urged financial regulators to “dare to” master their supervisory role, according to commentary penned by an official at the banking regulator, published in the Party mouthpiece People’s Daily this month.And it’s the $1.2 trillion online lending industry that’s been first in line for a shake-up, with many companies already trying to meet stringent rules that are yet to be finalized.Ant, the biggest player in online lending, has been the most visible casualty given the abrupt halt to its record-setting IPO this month. Apart from discussions about replenishing capital, Ant is also slowing the pace at which it packages existing loans into asset-backed securities to sell to investors, a person familiar with the matter said.The company currently keeps about 2% of loans on its own balance sheet, with the rest funded by third parties or packaged as securities and sold on.“When Ant does return to the market, investor sentiment is expected to be more restrained,” Bernstein Singapore-based analyst Kevin Kwek wrote in a recent report, adding that its valuation could be cut up to 28%.Francis Chan, a senior analyst at Bloomberg Intelligence, estimates that Ant may need to inject as much as 80 billion yuan into its two consumer lending units to comply with the new regulations on funding and leverage. Ant declined to comment.The turn toward caution is hindering JD Digits, the finance affiliate of e-commerce giant JD.com Inc., which filed for an IPO with the Shanghai Star Market in September. JD Digits is weighing changes to its listing plans and discussing options with existing shareholders, people familiar said. Its previous target of debuting in the first half of 2021 now looks difficult, according to one of the people.JD Digits said in a text message that it is working with regulators, declining to comment further.Newly listed Lufax is an example of the dangers of going public when the scope of increased regulation isn’t clear.The fintech unit of Ping An Insurance Group Co., China’s biggest insurer by market value, warned investors before it listed that it planned to increase the proportion of loan risk it bears with lending partners to 20% from 2% because of regulatory trends, people familiar said.Lufax was valued at less when it listed than in a previous funding round and allowed existing shareholders to swap their stock into convertible bonds to make up for potential losses, according to people familiar. The lender has seen its stock swing violently since it recent debut as it’s become a target for short-sellers.Lufax declined to comment via email.Chinese regulators are becoming vocal about reining in the booming digital finance sector, signaling the clampdown has further to run.Liang Tao, a vice chairman of the China Banking and Insurance Regulatory Commission said this month that fintech companies don’t change the nature of the financial industry and firms should be subject to the same supervision and risk management as banks. In areas where a market monopoly can be spotted, Liang said, the regulator will step up probes to ensure fair competition and order.A Ping An unit, together with a few banks, was reprimanded by the banking watchdog this month for bundling its own insurance products when making micro loans. Ping An Puhui Financing Guarantee Co. -- part of Lufax’s loan platform -- also charged high service fees, pushing up costs, according to a statement.Lufax has already started offering credit guarantee options from multiple insurance partners so customers have more choice, a person familiar said. It also significantly lowered fees in September, reducing clients’ costs, the person said, declining to be named as the measures were not publicly announced.“In the short term, investors are likely to grow unsure about the transparency of financial regulation in China,” said Ken Peng, head of Asia investment strategy at Citigroup Inc.’s private-banking arm. “Policy makers are cautious about fintech, which is a new industry and takes time for regulation to adapt.”(Adds comment from analyst in 11th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.