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Stock impact report

FinVolution: A Compelling GARP Play In Asia [Seeking Alpha]

FinVolution Group American Depositary Shares (FINV) 
Company Research Source: Seeking Alpha
Pakistan can be framed as a call option, limited downside, stellar upside. It has 251 million people, with 64% under 30 and mostly unbanked. De-listing and confiscation risks are highly unlikely from the perspective of game theory and the Nash equilibrium. The stock is undervalued in different models, either based on revenues, earnings, or book value. For example, its forward P/E ratio is just 4.79x. I expect a 62% upside, based on reasonable assumptions in a residual earnings model. Maki Nakamura/DigitalVision via Getty Images Thesis I rate FinVolution ( NYSE: FINV ) as a 'Strong Buy,' while I expect 62% upside for the next 12 months based on reasonable assumptions. This thesis is built on three pillars: growth, valuation, and risk acknowledgment. Regarding growth, the first pillar, they increased This article was written by Analyst's Disclosure: I/we have a beneficial long position in the shares of FINV either through stock ownership, options, or other derivatives Show less Read more
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