Nu Holdings Surges 2.08 on Analyst Upgrades and Growth Momentum Despite 87th-Ranked $770M Trading Volume

Nu Holdings (NU) surged 2.08% on August 25, with a trading volume of $0.77 billion, ranking 87th in the market. The stock’s performance was driven by analyst upgrades and operational progress, reflecting renewed investor confidence in the digital banking platform.

Bank of America Securities raised its price target for Nu to $16 from $14 while maintaining a Neutral rating, citing improved profitability metrics such as an expanded net interest margin after three consecutive quarters of decline. Citigroup also contributed to the momentum by upgrading its rating from Sell to Buy and doubling its price target to $18. These moves followed Nu’s strong Q2 2025 results, which included a 20.69% year-over-year revenue increase and net income exceeding forecasts by 5%.

Regional expansion further bolstered sentiment. Nu México reported a 52% annual growth in credit cardholders, reaching 6.6 million, signaling robust market traction in Latin America. Analysts highlighted benign asset quality trends as a potential catalyst for future loan growth and profitability. Despite these positives, the stock remains 10.4% below its 52-week high of $15.89, suggesting lingering caution among investors.

Backtesting of a strategy purchasing top 500 high-volume stocks and holding for one day from 2022 to 2025 yielded a 31.52% total return, with an average daily gain of 0.98%. The approach achieved a Sharpe ratio of 0.79, demonstrating moderate risk-adjusted returns amid market volatility, with peak and trough daily swings of 4.95% and -4.47%, respectively.