Needham & Company Starts Yirendai Ltd. (YRD) at Buy

Needham & Company initiates coverage on Yirendai Ltd. (NYSE: YRD) with a Buy rating and a price target of $8.50.

Analyst Mayank Tandon commented, "We initiate coverage of Yirendai at BUY with an $8.50 target price. As one of the leading online lending peer-to-peer (P2P) platforms in China, by virtue of its brand, scale, risk management capabilities, and technology platform, we believe YRD is well positioned to penetrate the large and underserved unsecured consumer finance opportunity in China. Based on its strengths, we see Yirendai recording strong loan volume over FY16 and FY17. We do see some key risks to consider, such as potential for increased industry regulation, higher delinquency rates, increased competition, pressure on transaction fees, and higher customer acquisition costs, and therefore while we see Yirendai as a multi-year high-growth story we note that it would likely be well suited for growth portfolios with a high tolerance for risk."

For an analyst ratings summary and ratings history on Yirendai Ltd. click here. For more ratings news on Yirendai Ltd. click here.

Shares of Yirendai Ltd. closed at $6.86 yesterday.

You May Also Be Interested In

• Needham Starts Faeth Therapeutics (FTH) at Buy
• Mizuho Reiterates Outperform Rating on Broadcom Limited (AVGO) Into EPS
• Keefe, Bruyette & Woods Resumes Royal Bank of Canada (RY:CN) (RY) at Market Perform