Jorge Kuri, an analyst from Morgan Stanley, reiterated the Buy rating on Nu Holdings (NU – Research Report). The associated price target remains the same with $18.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Jorge Kuri has given his Buy rating due to a combination of factors that highlight Nu Holdings’ potential in the payroll loan market. Firstly, Kuri believes that the market underestimates Nubank’s ability to capture a significant share of the payroll loan segment. Despite a gradual start since launching its payroll loan product in 2023, Nubank is well-positioned to gain a substantial market share, potentially reaching 10% by 2026, which is significantly higher than the consensus estimate of 3-4%.
Moreover, Nubank’s competitive advantages, such as its large customer base, efficient digital distribution model, and cost-effective pricing strategy, provide it with a strong edge over traditional banks. These factors, combined with the potential for increased loan originations as interest rates fall, support Kuri’s optimistic outlook. The analyst’s conviction is further reinforced by Nubank’s ability to offer rates significantly lower than its peers, which is a crucial factor for consumers in choosing payroll loan providers. Overall, these elements contribute to Kuri’s positive assessment and Buy rating for Nu Holdings.