Nu Holdings (NYSE: NU) stock fell during intraday trading on Monday despite receiving positive analyst coverage.
Nu Holdings has received a significant vote of confidence from Jefferies. The firm raised its price target to $15.20 from the previous $10.80, while maintaining a Buy rating on the stock.
The upward revision in the price target underscores Jefferies’ confidence in Nubank’s earnings potential. The analyst forecasts a significant earnings increase of about 65% by FY28, compared to FY26, driven by sustained top-line growth and enhanced operational efficiency.
Jefferies’ analysis includes a detailed full disclosure by geography and product lines, aiming to capture the diverse dynamics across Nu Holdings’ key markets. This comprehensive evaluation underscores the firm’s rationale for maintaining a bullish outlook on the stock.
The adjustment in the price target coincides with Jefferies rolling over its estimates to FY28, highlighting a long-term perspective on the company’s financial prospects. The firm forecasts continued expansion and scaling of operations, contributing to sustained earnings growth in the coming years.
In parallel, other major financial institutions have revised their outlook on Nu Holdings. BofA Securities recently raised its price target to $12.80, maintaining a neutral rating. This adjustment aligns the target multiple to 22 times the projected 2025 earnings per share, comparable to the growth profiles of similar companies.
Additionally, UBS has upheld its Buy rating with a steady price target of $13.50 despite a mixed performance in Nu Holdings’ loan segments. Susquehanna also maintained a Positive rating, increasing the price target to $14. This decision follows Nu Holdings’ impressive financial results for the first quarter of 2024, which reported a 64% year-over-year revenue increase to $2.7 billion and a net income of $379 million, reflecting a remarkable 160% YoY growth.
Nu Holdings (NYSE: NU) Stock Movement
On Monday, NU stock declined 3.18%, closing at $11.86, marking a 0.85% increase for the week. The trading volume was 59,077,548 shares, significantly higher than the average daily volume of 22.73 million.
