UPDATE: Morgan Stanley Downgrades OneConnect Financial (OCFT) to Equalweight
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Morgan Stanley analyst Yang Liu downgraded OneConnect Financial (NYSE: OCFT) from Overweight to Equalweight with a price target of $7.50 (from $19.00).
The analyst comments "We underestimated the regulatory impact to OCFT. OCFT attributed the revenue miss to the worse than expected regulation on the use of personal data in retail internet loan facilitation and geographic limitation for its regional bank customers. OCFT had ~Rmb500mn revenue exposure in these fields last year, or 15% of total revenue. It has been adjusting solutions to help customers to be fully compliant with the regulation, while the short term impact looks much bigger than our expectation."
Shares of OneConnect Financial closed at $7.46 yesterday.
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