Up Fintech Holding (TIGR) has received a new Buy rating, initiated by Bank of America Securities analyst, Emma Xu.
Emma Xu’s rating is based on several compelling factors. Up Fintech Holding, known as Tiger Brokers, is positioned as a leading online brokerage firm that stands to benefit significantly from the growing wealth market in Asia. The company has successfully expanded beyond its initial focus on mainland China’s overseas investment demand, establishing a strong presence in markets like Singapore, the US, and Australia. This expansion has led to Singapore contributing over 55% of its funded clients and client assets.
Emma Xu highlights Tiger Brokers’ competitive edge in offering a diverse range of services, including brokerage, ESOP management, and IPO distribution, which enhances its appeal to both retail and corporate clients. The company’s business model exhibits high operating leverage, resulting in improved profitability. Furthermore, Xu anticipates that the firm’s earnings for the fourth quarter of 2024 and 2025 will surpass market expectations, driven by its introducing broker business, which could further boost revenue. The price objective of USD 8.66 is based on a 16x P/E multiple for 2025 earnings, reflecting a strong growth forecast and potential market underestimation of Tiger’s capabilities.
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