Futu Holdings (FUTU – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Emma Xu from Bank of America Securities reiterated a Buy rating on the stock and has a $129.50 price target.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Emma Xu has given her Buy rating due to a combination of factors, reflecting Futu Holdings’ anticipated strong financial performance in the upcoming quarter. The company is expected to experience significant growth in new paying clients and total client assets, driven by substantial asset inflows despite some market-to-market losses. Additionally, Futu’s trading activities are projected to increase markedly, particularly in the US and HK/China markets, leading to a notable rise in brokerage and interest income.
Another reason for the Buy rating is the expected increase in total revenue and stable gross margins, coupled with a robust growth in net profits. Emma Xu also highlights the company’s diversified market exposure and the positive developments in overseas markets and new products, which contribute to an improving outlook for profitability. Moreover, the enhanced market sentiments in Hong Kong and China further support the optimistic forecast, resulting in a raised price objective for the stock.