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To: Rarebird who wrote (4452)	1/3/2023 10:03:55 PM
From: Sun Tzu	Read Replies (2) \| Respond to of 10599

BofA analyst Emma Xu downgraded Futu Holdings (FUTU) to Underperform from Buy with a price target of $27, down from $59.60, after the China Securities Regulatory Commission said it will ask Futu and Tiger ( TIGR) to correct what the regulator calls "illegal acts" in their cross-border securities business. Xu, who update her model to reflect expectations for an "orderly unwind," assumes that China clients in 2023 and 2024, trading velocity lowers to reflect negative sentiment from the CSRC’s actions and that compliance costs increase. Xu, who cut her earnings estimates by 25% and 37%, respectively, for 2023 and 2024, has also switched her valuation method due to "Futu’s less attractive growth profile," she tells investors. Published first on TheFly