Jorge Kuri, an analyst from Morgan Stanley, maintained the Buy rating on Nu Holdings (NU – Research Report). The associated price target remains the same with $18.00.
Jorge Kuri has given his Buy rating due to a combination of factors that highlight Nu Holdings’ strong growth potential and strategic positioning. The company’s Brazil credit card portfolio continues to demonstrate robust growth, with significant net customer additions and high engagement among affluent clients. Despite a temporary slowdown in PIX financing, management anticipates it will expand as a larger portion of the credit card portfolio by the second half of 2025.
Additionally, Nubank’s unsecured and secured loan segments in Brazil, along with its operations in Mexico, are performing well, with minimal investor concerns. The company expects secured loans to increase their share of the credit book, positively impacting net interest margin (NIM) and return on equity (ROE). Moreover, adjustments for IFRS accounting technicalities suggest that the revenue yield for the credit card business is more favorable than initially perceived, supporting a positive outlook for the company’s financial performance.
In another report released on February 21, Barclays also maintained a Buy rating on the stock with a $17.00 price target.
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