Noah Holdings Upped to Strong Buy - Analyst Blog
Why the Upgrade?
Shanghai based investment management firm Noah Holdings has witnessed positive estimate revisions on the back of strong fourth-quarter 2013 results. The company has delivered positive earnings surprises in 3 of the 4 quarters of 2013 with an average beat of 61.8%. Further, the expected EPS growth rate now stands at 24.9%.
On Feb 26, Noah Holdings reported its fourth-quarter and full-year 2013 results. Income per ADS in the reported quarter came in at 24 cents, beating the Zacks Consensus Estimate by 20.0%. Results benefited from top-line growth aided by strong wealth management performance.
Driven by a surge in both third-party revenues and related party revenues, net revenue was up 81.1% year over year to $45.4 million. However, total expenses rose 75.6% to $18.3 million.
During the quarter, active clients were up 78.9% year over year to 2,927. Further, Noah Holdings distributed wealth management products worth around $1.9 billion in the quarter, representing an 81.0% increase from the prior-year period. Notably, it comprised 83.5% fixed income products, 11.6% private equity fund products while other products, including mutual fund products, private securities investment funds and insurance products, covered the remaining 4.9%.
As of Dec 31, 2013, total number of registered clients stood at around 53,501, reflecting a year-over-year rise of 32.7%.
Additionally, the Zacks Consensus Estimate for 2014 increased 5.5% to $1.16 per share.
Other Stocks to Consider
Other stocks in this space worth considering include Fortress Investment Group LLC ( FIG ), Lazard Ltd. ( LAZ ) and Och-Ziff Capital Management Group LLC ( OZM ). All these stocks hold the same Zacks Rank as Noah Holdings.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.