Noah Holdings Up to Strong Buy on Solid Q2 Results, Guides Up - Analyst Blog

On Aug 21, Zacks Investment Research upgraded Noah Holdings Limited ( NOAH ) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

Noah Holdings has been witnessing rising earnings estimates over the last 30 days with long-term expected earnings growth rate of 24.90%. Further, this China-based wealth management service provider has now delivered positive earnings surprises in three of the last four quarters with an average beat of 26.75%.

The Zacks Consensus Estimate for 2014 increased 1.7% to $1.21 per ADS, over the last 30 days. For 2015, the Zacks Consensus Estimate advanced 6.8% to $1.42 per ADS over the same time period.

Noah Holdings reported its second-quarter results on Aug 12 with earnings per ADS of 41 cents beating the Zacks Consensus Estimate of 31 cents by 32.26%. Net income was up 58.3% year over year.

Organic growth was reflected in the quarter riding on higher revenues (up 61.4% year over year). Further, as of Jun 30, 2014, total number of registered clients increased 32.6% year over year to 60,801, while active clients were 3,538, up 36% from the prior-year period. However, higher operating cost and expenses were on the downside.

For 2014, management expects non-GAAP net income attributable to Noah shareholders to be in the range of $72 million to $76 million, reflecting a year-over-year increase in the range of 27.0% and 34.1%.

Other Stocks to Consider

Some other stocks in the same sector worth considering include AllianceBernstein Holding L.P. ( AB ), Cohen & Steers Inc. ( CNS ) and SEI Investments Co. ( SEIC ). All three carry a Zacks Rank #1.

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ALLIANCEBERNSTN (AB): Free Stock Analysis Report

COHEN&STRS INC (CNS): Free Stock Analysis Report

SEI INVESTMENTS (SEIC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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