Nu Holdings (NU – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Yuri Fernandes from J.P. Morgan upgraded the rating on the stock to a Buy and gave it a $13.00 price target.
Yuri Fernandes has given his Buy rating due to a combination of factors that highlight Nu Holdings’ potential for growth and profitability. Despite a recent sell-off, Fernandes sees this as an opportunity for investors, as the stock is currently trading at a favorable valuation. He anticipates that Nu Holdings will experience significant earnings growth, exceeding 30% over the next three years, which is a rare find in the current market.
Moreover, Fernandes points out that Nu Holdings benefits from strong management and execution, having surpassed initial earnings expectations significantly. The company’s competitive advantages in the Brazilian retail banking sector and its large market potential further support the positive outlook. While there are some risks, such as a potential slowdown in personal loans, these are considered to be already reflected in the stock’s current price. Overall, the combination of these factors makes Nu Holdings an attractive investment opportunity according to Fernandes.
In another report released on April 4, Morgan Stanley also reiterated a Buy rating on the stock with a $18.00 price target.