Noah Holdings upgraded to Buy from Neutral at UBS

UBS upgraded Noah Holdings to Buy from Neutral with a price target of $18, up from $16.30. The analyst cites stable business operations and an “undemanding valuation” for the upgrade. The stock has de-rated by 38% from the peak level in February after a short rally boosted by China’s reopening, the analyst tells investors in a research note. The firm thinks risk is now tilted more to the upside than downside. Several catalysts could likely drive the stock’s re-rating, including limited impact on Noah’s business operations from the Zhongzhi default and potentially increased shareholder return through possibly higher payout ratio or even share buybacks, says UBS.