Lufax assumed with Neutral from Underweight at JPMorgan

JPMorgan upgraded Lufax (LU) to Neutral from Underweight with a price target of $2, down from $2.20, after assuming coverage of the name. The firm sees limited valuation downside in the shares given the company’s “cash cushion,” Ping An parentage, and lower regulatory exposure than peers. However, a lack of earnings visibility, Lufax’s commitment to shareholder returns, and its unresolved litigation prevent a more positive stance of the stock, the analyst tells investors in a research note. JPMorgan says Lufax is “cash-rich but catalyst-poor.”