Citi analyst Gustavo Schroden has reiterated their bullish stance on NU stock, giving a Buy rating on September 5.
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Gustavo Schroden has given his Buy rating due to a combination of factors that highlight Nu Holdings’ potential in the Mexican market. The company has demonstrated strong growth in both deposits and credit since its operations began in the fourth quarter of 2022, with significant client adoption. The market in Mexico is substantial, with consumer loans representing a notable portion of GDP, and Nu Holdings has already captured a small but meaningful market share in consumer loans and total deposits.
Schroden believes that the unit economics and strategic parallels with Nu Holdings’ successful expansion in Brazil lend credibility to their approach in Mexico. The potential for a positive contribution to net income by 2026 is supported by two key drivers: the cost of funding and the loans-to-deposits ratio. These factors, combined with the expected share price return of 16.1%, underpin Schroden’s confidence in the company’s growth trajectory and justify the Buy rating.
In another report released on September 5, J.P. Morgan also maintained a Buy rating on the stock with a $17.00 price target.