In a report released today, Jorge Kuri from Morgan Stanley maintained a Buy rating on Nu Holdings (NU – Research Report), with a price target of $18.00.
Jorge Kuri’s rating is based on several compelling factors that highlight Nu Holdings’ potential for growth and resilience. One of the key reasons for the Buy rating is the underappreciated potential of Nubank’s new private payroll loan product, which is seen as a significant growth engine. This product is expected to expand credit access without heavily impacting the risk-adjusted net interest margin, thanks to Nubank’s cost efficiency and technological advantages.
Furthermore, Kuri notes that short-term risks, such as pressures on net interest margins and concerns related to PIX financing, appear to be already reflected in the current share price, presenting an attractive entry point for investors. Additionally, Nubank’s structural strengths, including its low cost-to-serve and advanced technology, support its long-term growth story by enabling effective cross-selling and capturing market share. Despite some concerns about macroeconomic uncertainties and competitive pressures, Kuri believes that Nubank’s high return on equity and strategic positioning make it a top pick in the financial sector.
In another report released on April 8, J.P. Morgan also upgraded the stock to a Buy with a $13.00 price target.