Citi analyst Judy Zhang upgraded the rating on Futu Holdings to a Buy today, setting a price target of $201.00.
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Judy Zhang’s rating is based on a combination of factors that highlight Futu Holdings’ potential for growth and shareholder value. Despite a recent decline in share price due to market volatility, the company has shown strong client asset inflow and trading volume, which are expected to continue supporting its brokerage commission and interest income. The announcement of an $800 million buyback program further demonstrates management’s commitment to accelerating shareholder returns, making the stock an attractive investment at its current valuation.
Moreover, the company’s proactive approach in managing regulatory requirements, such as closing inactive accounts, is not expected to impact its paying client numbers or assets under management. With stable client asset balances and expected growth in trading volume, Futu Holdings is well-positioned to maintain its earnings momentum. These factors, combined with the potential for a 30% upside in share price, underpin Judy Zhang’s decision to upgrade the stock to a Buy/High Risk rating.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $236.00 price target.