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Nu Holdings stock climbs after initiated at Goldman Sachs with Buy

Seeking Alpha2022-01-03

  • Brazil-based financial services platform Nu Holdings'(NYSE:NU)stock rises more than3%in pre-market trading after Goldman Sachs analyst Michael Ng initiates the fintech with a Buy rating.
  • As the company expands its loan portfolio in high yielding products, "it's well positioned to increase profitability significantly beginning in 2023, and we see it reaching an ROE of 39% by 2025," the analyst writes in a note to clients.
  • Despite macro risks rising in Brazil, the company's proprietary technology platform and relatively low market share can allow it to grow in a counter-cyclical trends, Ng notes.
  • Additionally, UBS analyst Thiago Batista also initiates Nu Holdings (NU) with a Buy rating on the company's continued expansion of its strong client base, as well as an implementation of new products, he writes in a note to clients.
  • Batista forecasts the company's client base to be 100M in 2026, with the majority based in Brazil.
  • Applies a $12.50 price target, implying 33.3% upside from Friday's close; derived from a price/book value 2026 estimate of 4.5x.
  • The Buy ratings diverge from the NeutralWall Street Analyst Rating.
  • Still, shares of NU are trading about 10% below its initial public offering price of $9 per share on Dec. 9 of 2021.

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Comment13

  • DinoLim
    ·2022-01-10
    Nice
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  • Kerrisdale
    ·2022-01-05
    Nice.
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  • huathuatking
    ·2022-01-04
    Wow
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  • 7united
    ·2022-01-03
    Awesome 
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  • Majestic Prime
    ·2022-01-03
    Yea
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  • Stan1955
    ·2022-01-03
    Noted
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  • CXl
    ·2022-01-03
    Good
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  • Wheee
    ·2022-01-03
    Likr
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  • Kerrisdale
    ·2022-01-03
    Good news.
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  • Hwee
    ·2022-01-03
    Cvhn
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  • Myname
    ·2022-01-03
    Like
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  • ew1202
    ·2022-01-03
    Lets go
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  • Sam87
    ·2022-01-03
    Good
    Reply
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