Shares of Lufax Holding Ltd (LU) tumbled 5.01% in Tuesday's trading session, as investors braced for potentially disappointing earnings results. The Chinese financial services firm is scheduled to report its quarterly earnings on October 9, with analysts projecting a significant decline in revenue and a move into loss-making territory.
According to LSEG data, Lufax is expected to report a 19.2% year-over-year decrease in revenue to $780.43 million, down from $965.76 million in the same period last year. More concerning for investors is the mean analyst estimate of a loss of 3 cents per share, signaling a potential shift from profitability to loss in the company's bottom line.
The bearish sentiment is further reflected in Wall Street's price targets. The median 12-month price target for Lufax stands at $2.87, approximately 42.8% below its previous closing price of $4.09. This significant discrepancy suggests that analysts believe the stock may be overvalued at current levels. Additionally, the current average analyst rating on Lufax shares is a "hold," with a mixed breakdown of recommendations: 2 "strong buy" or "buy," 1 "hold," and 2 "sell" or "strong sell." This lack of consensus among analysts may be contributing to investor uncertainty and the subsequent stock sell-off.