LX Should I Buy
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Lexinfintech Holdings Ltd (LX) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company's net income and EPS have shown significant growth in the latest quarter, the declining revenue and gross margin, coupled with bearish technical indicators and a lack of positive catalysts, suggest that the stock may not offer an optimal entry point right now. Additionally, the recent downgrade by UBS and the range-bound outlook until Q1 2026 further reduce its attractiveness.
The technical indicators show a bearish trend. The MACD is positive but contracting, RSI is neutral at 41.021, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of 2.833, with resistance at 3.001 and support at 2.665. This indicates limited upside potential in the short term.
The company's net income increased by 68.39% YoY, and EPS grew by 58.70% YoY in Q3 2025, indicating improved profitability.
UBS downgraded the stock to Neutral with a reduced price target of $3.50, citing asset quality and regulatory concerns. No recent news or congress trading data to support positive sentiment.
In Q3 2025, revenue dropped to 3.42 billion (-6.68% YoY), while net income increased to 521.27 million (+68.39% YoY). EPS rose to 1.46 (+58.70% YoY), but gross margin declined to 61.88 (-5.69% YoY).
UBS downgraded the stock to Neutral from Buy, with a price target reduced to $3.50 from $13.60. The firm expects the stock to remain range-bound until Q1 2026, citing asset quality and regulatory cycle concerns.
