Futu Holdings: Strong Q1 Performance Amid Potential Headwinds Justifies Hold Rating

Judy Zhang, an analyst from Citi, maintained the Hold rating on Futu Holdings (FUTU – Research Report). The associated price target is $113.00.

Judy Zhang’s rating is based on a combination of factors that reflect both the strengths and potential challenges facing Futu Holdings. The company reported a strong financial performance in the first quarter of 2025, with record-high quarterly profits and significant growth in gross profit driven by robust trading volumes and resilient net interest income. Additionally, the company demonstrated effective operational expense control, which contributed to an improved return on equity.
However, despite these positive results, Zhang maintains a Hold rating due to potential headwinds that could impact future earnings. These include the sharply reduced Hong Kong Interbank Offered Rate (HIBOR) since early May 2025 and the possibility of a market pullback in Hong Kong and the US. Furthermore, while the growth in new paying customers was impressive in the first quarter, there is an expectation of a decline in the second quarter, which could pose challenges in maintaining momentum. These factors contribute to a cautious outlook, justifying the Hold recommendation.

Zhang covers the Financial sector, focusing on stocks such as FinVolution Group, Qifu Technology, and Futu Holdings. According to TipRanks, Zhang has an average return of 5.2% and a 49.06% success rate on recommended stocks.

In another report released yesterday, Goldman Sachs also maintained a Hold rating on the stock with a $114.77 price target.