Stock Price & Analysis

Based on the recent data and market analysis, here's a concise assessment of NU stock:

Technical Analysis

The stock has experienced significant selling pressure, dropping from its recent high of $14 to around $10.22, representing a decline of approximately 27%. The RSI indicator at 28.13 suggests oversold conditions, potentially indicating a technical bounce opportunity.

Fundamental Strengths

• Strong customer growth reaching 109.7 million users
• Impressive revenue growth with 38% year-over-year increase
• Positive GAAP net income of $553 million in Q3 2024, up 83% YoY
• Efficient operations with cost per customer at $0.70

Recent Concerns

• Rising non-performing loans at 7.2%, up from 6.1% year-over-year
• Increased write-offs reaching $1.6 billion
• Berkshire Hathaway reduced its position by 19%
• Credit card receivables growth has slowed

Analyst Sentiment

Recent analyst updates remain positive, with Susquehanna maintaining a Buy rating and raising the price target to $12, while UBS maintains a Strong Buy with a $12 target.

Conclusion

Based on the oversold technical conditions and strong fundamental growth despite recent challenges, NU stock presents a buying opportunity at current levels around $10.22. The company's robust customer growth and improving profitability metrics suggest potential for recovery, though investors should be mindful of credit quality concerns.

Based on the provided data and references, I'll analyze NU's price prediction for 2025:

Technical Analysis

The stock is currently trading at $10.82, showing a strong upward trend over the past year with over 120% gain. The recent price action shows consolidation around the $10-11 range.

Fundamental Growth Drivers

• Strong Customer Growth:

  • Currently has 109.7 million customers
  • Adding 5.2 million new customers quarterly
  • 60% of active members use Nu as primary bank account

• Revenue & Profitability:

  • Q3 2024 revenue reached $2.9 billion
  • Net income increased 83% YoY to $553 million
  • Strong unit economics with $11 ARPAC (Average Revenue Per Active Customer)

2025 Price Targets from Multiple Sources

Based on the compiled forecasts:

1. Conservative Scenario ($11-12):

• Barclays lowered price target to $15
• Technical support levels around $11

2. Base Case ($13-14):

• End of 2025 forecast of $13.51
• Consensus among analysts points to $13-14 range

3. Bullish Scenario ($15-16):

• Wall Street consensus price target of $15.80
• Some analysts project up to $19 as highest target

Key Growth Catalysts for 2025

1. Geographic Expansion:

• Growing presence in Mexico and Colombia
• Targeting 25 overseas markets by end of 2025

2. Product Innovation:

• Expanding into high-yield savings accounts
• Focus on AI-driven customer service

Price Prediction for 2025

Based on the analysis of multiple sources and growth catalysts, NU stock is likely to reach $13.50-14.00 by end of 2025, representing approximately 25-30% upside from current levels. This prediction is supported by:

• Strong fundamental growth in user base and revenue
• Geographic expansion plans
• Product diversification strategy
• Analyst consensus targets

The most likely price movement pattern shows:

• H1 2025: $11-12 range
• H2 2025: $13-14 range
• Year-end target: $13.50-14.00

The S1 support level for NU Stock is $11.28 ,The R1 resistant level for NU Stock is $13.82.

As of the end of day on 2025-02-26, the price of NU Stock was $11.4.

The target price for NU Stock according to analyst rating is 16.67, with the highest price target at 18.00 and the lowest at 15.00. Analysts have a Moderate Buy rating on NU Stock overall.

The market cap of NU is $53.4B.

Based on the provided data and recent market activity, let me analyze whether NU is overvalued:

Technical Analysis

Valuation Assessment The stock currently trades at a forward P/E of 16x, which is relatively reasonable for a high-growth fintech company. This valuation is only slightly higher than traditional US banks like JPMorgan Chase (14x P/E) despite Nu's significantly higher growth profile.

Growth Metrics

• Revenue grew 38% YoY to $2.9 billion in Q3 2024
• Customer base expanded to 109.7 million, adding 5.2 million new customers in Q3 2024
• Average revenue per active customer increased to $11 in Q3 2024, up 25% YoY

Profitability Trends

• Q4 2024 net income of $552.6 million came slightly below consensus of $566.4 million
• Operating expenses as % of revenue improved to 21% from 24% YoY
• Cost to serve per customer decreased to $0.70 in Q3 2024 from $0.90 in H1 2024

Conclusion NU is not overvalued considering its strong growth trajectory, improving profitability metrics, and massive market opportunity in Latin America where 70% of the population remains unbanked. The current valuation at 16x forward P/E represents a reasonable entry point given analysts expect 34% revenue CAGR and 54% EPS CAGR through 2026.

Nu Holdings Ltd is a Brazil-based company that provides a digital banking platform. The Company offers its customers products across the five financial seasons: spending, saving, investing, borrowing, and protecting. Its spending solutions are designed to help customers pay for goods and services in their everyday lives with a customized credit line or instantly through a mobile phone, while collecting loyalty points and rewards on applicable transactions. Its savings solutions are designed to help customers deposit, manage and save their money in interest-earning accounts with complementary debit cards. Its investing solutions are designed to help customers invest their money in investment products and services. Its borrowing solutions are designed to provide customers with unsecured loans that are easy to receive, manage and pay back. Its NuInsurance protecting solutions are designed to help customers secure life insurance and funeral benefits.

Based on the available data and market analysis, here is the price prediction for NU stock by 2030:

NU stock is projected to reach $28-32 by 2030, driven by its strong expansion in Latin America and potential new market entries. The company's successful digital banking model in Brazil, which already serves 56% of the adult population, provides a proven template for replication in Mexico, Colombia, and newly announced markets like South Africa and Philippines. The company's capital-light business model with no physical branches supports sustained profitability growth.

The growth trajectory is supported by Nu's consistent ability to add over 5 million new customers quarterly while increasing revenue per user from $10 to $11 year-over-year. The company's loan originations grew 79% and deposits increased 60% in recent quarters despite economic headwinds.

The current forward P/E of 16x suggests significant upside potential given the company's robust growth profile and expanding addressable market across Latin America and potentially other emerging markets by 2030.

NU has a total of 7686 employees.