UBS Raises Nu Holdings PT to $15.6, Maintains Neutral Rating

UBS Raises Nu Holdings PT to $15.6, Maintains Neutral Rating

UBS Group AG has raised its price target for Nu Holdings (NYSE: NU) to $15.6, while maintaining a neutral rating. This move comes amidst strong earnings reports and growing optimism about the company's potential in the fintech sector. UBS analysts cited Nu Holdings' robust financial performance and strategic expansion into new markets as key reasons for the upward revision.

Nu Holdings reported $3.7 billion in revenue for Q2 2025, a 85% annualized increase, and net income tripled to $637 million over two years. The company's 28.3% efficiency ratio and $14 billion in cash reserves highlight its operational efficiency and financial flexibility. Analysts have been bullish on Nu Holdings, with a fair value estimate of $15.47 and a 12-month average price target of $14.15.

UBS's decision to raise the price target reflects the growing recognition of Nu Holdings' dominance in Latin America, particularly in Brazil, where it serves 58% of the adult population. The company's expansion into travel, e-commerce, and crypto services underscores its commitment to innovation and growth. Despite regulatory risks in Brazil and Mexico, Nu Holdings' strong balance sheet and profitability position it well to navigate these challenges.

UBS's neutral rating suggests a cautious but optimistic outlook on Nu Holdings' future prospects. The company's ability to grow revenue and profitability, coupled with its attractive valuation, makes it an intriguing investment for growth-oriented investors.

References:
[1] https://www.ainvest.com/news/nu-holdings-nu-high-growth-fintech-disruptor-strong-earnings-attractive-valuation-justifies-buy-2508/
[2] https://www.marketbeat.com/stocks/NYSE/NU/trends-and-sentiment/