After Stifel analyst John Davis initiated coverage of Qudian Inc – ADR QD with a Buy rating Wednesday, the Chinese microlender managed to secure the approval of more Wall Street firms. The Analyst Citigroup analyst Daphne Poon initiated coverage of Qudian at Buy, with a DCF-based target price of $38.79, suggesting 55 percent upside from Wednesday's close. The Thesis The partnership with Alibaba Group Holding Ltd BABA's Ant Financial would enable strong borrower engagement and effective risk management, Poon said in a note. Qudian has extensive access to first-time borrowers via unique access to Alibaba's Alipay interface, Poon said. Qudian's ability to link borrower repayment records to Zhima Credit Score gives the company risk management capability that outshines its peers, the analyst said. Read moreStochastics are oversold. We can expect a breakout of the falling wedge and some upside movement. $QD, Qudian Inc. / H1