UBS upgraded FinVolution to Buy from Neutral with a price target of $12.10, up from $11.80. FinVolution's Q1 results were strong, backed by margin expansion and asset quality, with the slight earnings beat achieved despite seasonally soft loan volume, the analyst tells investors in a research note. Additionally, growth momentum in operating profit was stronger, and margin expansion was driven by funding cost declined, a slightly lengthened tenor, and improved asset quality, the firm says, and the upgrade is based on a better risk-reward.
