Strong fundamentals and the potential for robust returns make Chinese online lending platform Qifu Technology an attractive buy, according to JPMorgan. The bank initiated the stock with an overweight rating and a $65 per share price target. JPMorgan’s forecast implies more than 51% upside from Tuesday’s close. Analyst Katherine Lei said Qifu’s return on equity — a widely followed profitability measure — will grow at a 9% clip from 2024 to 2027, while its earnings expand at a compounded annual growth rate of 24%. That’s the highest growth rate among Chinese lenders covered by JPMorgan, Lei said. She also pointed to the company’s loan growth in recent years, despite heightened volatility. QFIN YTD mountain Qifu Technology stock in 2025. “From 2020-24, Qifu reported 84% growth in the number of clients with credit lines and an average net take rate of 3.9% on facilitated loans,” Lei said. “Qifu has shown stable new loan growth and EPS growth vs peers during the macro volatility since 2020, demonstrating its operating prudency.” “Additionally, we expect credit cost to decline due to higher write-backs,” she said. The analyst also highlighted the company’s cash hoard as of the first quarter of 2025, which she said sits at 37% of equity. This supports the case for buybacks and dividends. “Qifu’s management has committed to reducing share count by 30% from 2023-26,” Lei said. “We estimate that cash dividends and share buybacks will amount to RMB 5.9bn/12.7bn from 2025-27, equating to 82% of 1Q25 equity, or 43% of the current market cap.” Shares have advanced roughly 11% in 2025. Qifu shares are not widely covered, but they are well liked by those who do. LSEG data shows that all 12 analysts covering shares have a buy or strong buy rating. The average price target also signals upside of more than 25%.
