Nu Holdings double-upgraded to Buy at Citi on potential earnings acceleration

Citi upgraded Nu Holdings (NU) to Buy from Sell with a price target of $18, up from $9. Despite concerns on the macroeconomic environment, the firm sees the recent quarters as a testament to the bank’s ability to not only navigate well but also accelerate in key portfolios while maintaining good asset quality, the analyst tells investors in a research note. Citi believes that Nu’s earnings momentum could accelerate, not only given Brazil and TPV dynamics but also given tailwinds from Mexico and Colombia and efficiency aiding return-on-equity.