Should I Buy LX? LX 2026 Analysis

Should You Buy Lexinfintech Holdings Ltd (LX) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

2.900

1 Day change

52 Week Range

11.450

Analysis Updated At

2026/01/26

Lexinfintech Holdings Ltd (LX) is not a strong buy for a beginner, long-term investor at this time. The lack of positive trading signals, bearish technical indicators, and a recent downgrade by analysts suggest limited near-term upside. While the company's net income and EPS have shown significant growth, the declining revenue and gross margin, coupled with regulatory uncertainties, make this stock a hold rather than a buy.

Technical Analysis

The technical indicators for LX are mixed to bearish. The MACD is slightly positive, but the RSI is neutral at 36.602, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 2.974, with resistance at 3.172. Overall, the technical setup does not indicate a strong buying opportunity.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

The company's net income increased by 68.39% YoY, and EPS grew by 58.70% YoY in Q3 2025, indicating improved profitability.

Neutral/Negative Catalysts

Revenue declined by 6.68% YoY, and gross margin dropped by 5.69% YoY. UBS downgraded the stock to Neutral with a reduced price target, citing regulatory and asset quality concerns. Additionally, there is no recent news or significant insider or hedge fund activity to drive positive sentiment.

Financial Performance

In Q3 2025, revenue declined by 6.68% YoY to 3.42 billion, while net income increased by 68.39% YoY to 521.27 million. EPS rose by 58.70% YoY to 1.46. However, gross margin dropped to 61.88%, down 5.69% YoY, reflecting potential operational challenges.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

UBS downgraded the stock to Neutral from Buy, reducing the price target from $13.60 to $3.50. Analysts expect the stock to remain range-bound until regulatory and asset quality cycles stabilize, likely in Q1 2026.

1 Analyst Rating

Wall Street analysts forecast LX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LX is 3.5 USD with a low forecast of 3.5 USD and a high forecast of 3.5 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

0 Buy

1 Hold

0 Sell

Hold

Current: 2.900

Low

3.5

Averages

3.5

High

3.5

Current: 2.900

Low

3.5

Averages

3.5

High

3.5

UBS

Buy -> Neutral

downgrade

AI Analysis

2025-12-04

Reason

UBS

Price Target