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Morgan Stanley Cuts Yirendai Price Target Nearly $20; Stock Drops 9%

CapitalWatch Staff 2018-11-19 14:56 PM
Morgan Stanley Cuts Yirendai Price Target Nearly $20; Stock Drops 9%

The shares of Yirendai Ltd. (NYSE: YRD) were trading at $20.64 per American depositary share, down nearly 9 percent by afternoon Monday after Morgan Stanley cut its price target of the company to $23.60 per share from $43.

The bank also cut its rating of the Chinese peer-to-peer lender to an "equal-weight" from "overweight."

Analyst Richard Xu said Beijing's new regulations capping P2P loan balances combined with "volatile industry delinquency rates" could lead to further earnings uncertainty in 2019 and beyond, as reported by Reuters.