Positive Growth Indicators and Market Exposure Support Buy Rating for Futu Holdings

Analyst Emma Xu from Bank of America Securities reiterated a Buy rating on Futu Holdings (FUTU – Research Report) and keeping the price target at $123.70.

Emma Xu’s rating is based on several positive indicators for Futu Holdings. Firstly, the company is expected to see a significant increase in new paying clients, with projections indicating a 20% quarter-over-quarter growth and a 45% year-over-year rise. This growth is anticipated to contribute substantially to the company’s annual target. Additionally, Futu’s total client assets are projected to grow by 12% quarter-over-quarter, driven by strong asset inflows and gains from the Hong Kong and China ADR bull markets.
Moreover, Futu’s trading activities are expected to remain robust, with stable trading velocity and an increase in total trading volume. This is likely to result in a 7% growth in brokerage income. Interest income is also projected to rise, offsetting potential declines due to lower interest rates. Despite some expected increases in selling and marketing expenses, overall revenue and gross profit are anticipated to grow, with net profit showing a 9% quarter-over-quarter increase. These factors, along with Futu’s diversified market exposure and strong growth in assets under management, underpin Emma Xu’s Buy rating for the stock.