Noah Rallies 25% After Chinese Wealth Management Boosts OutlookBelinda Cao
Noah Holdings Ltd., a Chinese wealth-management company, jumped to the highest level in more than two years in New York after raising its 2013 profit estimate.
Noah’s American depositary receipts surged 25 percent to $16.28 as of 12:53 p.m., gaining the most since February 2012. They earlier soared as much as 27 percent. Trading volume was six times the daily average over the past three months, data compiled by Bloomberg showed.
The Shanghai-based company raised its 2013 adjusted net income forecast to as much as $55 million in a statement yesterday, 49 percent more than an estimate of up to $37 million given on May 6. Noah is scheduled to report second-quarter earnings on Aug. 21.
“We were surprised by Noah’s big upside revision to its 2013 profit guidance, which was far ahead of our previous estimate,” Ella Ji, an analyst at Oppenheimer & Co. in New York, said by phone. “The big growth is likely to benefit from its good performance in real-estate fund management business.”
Ji raised Noah to outperform, an equivalent to buy, from market perform in a note, setting a price target of $18.