How will the reported rebound in profitability affect NOAH’s valuation and price target in the short term?

The Q2 earnings beat – highlighted by a “strong rebound in profitability” and a sentiment score of 70 – is likely to lift NOAH’s short‑term valuation on two fronts. Fundamentally, the earnings surge should compress the earnings‑multiple discount that the market has been applying to a wealth‑management play that is still viewed as cyclical. Assuming the company’s FY‑25 earnings guidance stays in line with the Q2 trend, a 10‑15 % lift in FY‑25 EPS would justify expanding the current price‑to‑earnings (P/E) multiple from roughly 8× to the sector‑average of 10‑11×. That translates into a revised intrinsic value of roughly $30‑$32 per share (up from the $27‑$28 range implied by last month’s target), giving analysts a new short‑term price‑target corridor of $30‑$33.

On the technical side, the stock is trading just above its 20‑day SMA and has broken the descending‑triangle pattern that formed between $26.20 and $28.10, with volume accelerating on the upside. Key resistance now sits at the prior high of $31.50, while the $28.20‑$28.80 band serves as a springboard support. In practice, a breakout above $31.50 with confirming volume would validate the upgraded valuation and could trigger a short‑term swing trade targeting $33‑$35. Conversely, a retest of the $28.20 support without a clear bounce would keep the downside risk limited to the $26.20 level. Overall, the profitability rebound justifies raising the short‑term price target to the low‑$30s and supports a bullish stance, especially for traders who can manage risk around the $31.50 resistance zone.