Futu Holdings Soars 2.82% Amid 343rd Trading Volume Ranking as BofA Upgrades Price Target to $172

Futu Holdings (FUTU) rose 2.82% on August 5, 2025, with a trading volume of $0.35 billion, ranking 343rd in the market. Analysts at BofA upgraded their price target for the stock to $172 from $143.90, maintaining a "Buy" rating. The firm anticipates a 35% year-over-year increase in new paying clients despite a projected 20% sequential decline in Q2, while total client assets are forecasted to grow 12-13% quarter-on-quarter. Revenue is expected to rise 10% sequentially, supported by stable commission rates and higher interest income.

Despite a slight gross margin contraction of two percentage points, BofA highlighted robust asset inflows and high trading velocity as key positives. The company’s digital platform, Futu NiuNiu, serves major markets including Hong Kong, Mainland China, Singapore, and the U.S., generating revenue through commissions and interest income. With a market cap of $21.9 billion, Futu has shown strong historical growth, including a 55% one-year revenue increase and a 53.5% five-year compound growth rate.

Financial metrics remain mixed: an operating margin of 51.71% and net margin of 41.75% reflect operational efficiency, but an Altman Z-Score of 1.15 signals potential financial distress. The stock trades at a premium, with a P/E ratio of 26.2 and P/B ratio of 5.62. Analyst consensus remains bullish, with a recommendation score of 1.8. Technical indicators show the stock trading above key moving averages, though its beta of 1.81 underscores elevated volatility.

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