Stock Price & Analysis

Based on the provided data and current market conditions, here's my analysis of NU stock:

Technical Analysis

The stock is currently trading at $11.99, showing a positive momentum with a +4.44% gain in the last regular trading session. The stock has demonstrated strong performance, rising 27.43% in 2024.

Fundamental Strengths

• Strong Customer Growth: Nu has expanded its customer base to over 109.7 million users across Brazil, Mexico, and Colombia
• Improving Financials: Revenue grew at a CAGR of 117% from 2021 to 2023, with consistent profitability since 2023
• Strategic Expansion: Recently invested $150 million in Tyme Group, expanding into Africa and Southeast Asia markets

Recent Developments

• Management is considering relocating legal domicile to the UK to enhance global expansion
• The company is exploring U.S. market opportunities due to favorable regulatory conditions

Analyst Sentiment

Recent analyst ratings show mixed sentiment:

• Citigroup: Downgraded to Strong Sell with $11 PT
• Susquehanna: Maintains Buy with $18 PT
• Keybanc: Maintains Buy with $17 PT
• Goldman Sachs: Maintains Strong Buy with $19 PT

Recommendation

HOLD. While Nu shows strong fundamentals and growth potential, the stock has already seen significant appreciation in 2024. The current price of $11.99 sits between bearish ($11) and bullish ($17-19) analyst targets. The mixed analyst sentiment and recent strong rally suggest waiting for a better entry point.

Based on the provided data and market analysis, here is the price prediction for NU stock in 2025:

NU stock is expected to reach $14-15 by end of 2025, driven by continued strong customer growth in Latin America and improving profitability metrics. The company's successful expansion into Mexico and Colombia, along with its recent $150 million investment in Tyme Group for further international growth, supports this bullish outlook.

The technical analysis shows an upward trend with strong momentum, while fundamentals remain solid with revenue growing at 35% CAGR through 2026 and EPS increasing at 55% CAGR.

The S1 support level for NU Stock is $10.9 ,The R1 resistant level for NU Stock is $12.3.

As of the end of day on 2025-01-24, the price of NU Stock was $12.41.

The target price for NU Stock according to analyst rating is 17.38, with the highest price target at 18.90 and the lowest at 15.00. Analysts have a Moderate Buy rating on NU Stock overall.

The market cap of NU is $58.8B.

Based on the provided data and recent market activity, here's a comprehensive analysis of Nu Holdings' (NU) valuation:

Current Market Position NU is currently trading at $12.00, showing a 4.44% gain in the last regular trading session. The stock has demonstrated strong momentum in 2024, rising 27.43% year-to-date.

Valuation Analysis The stock's current P/B ratio of 8.58 (Q3 2024) indicates a premium valuation compared to traditional banking peers. However, this premium can be justified given Nu's digital-only business model and superior growth metrics.

Analyst Sentiment Recent analyst actions show mixed opinions:

• Citigroup downgraded to Strong Sell with $11 PT (Dec 2024)
• Goldman Sachs maintains Strong Buy with $19 PT (Nov 2024)
• Susquehanna and Keybanc are bullish with $18 and $17 PTs respectively

Growth & Market Position

• Customer base tripled from 33.3M (end of 2021) to 109.7M (Q3 2024)
• Activity rate improved from 76% to 84% over 12 consecutive quarters
• Monthly average revenue per active customer increased from $4.50 (2021) to over $11 (throughout 2024)

Strategic Developments The company is considering relocating its legal domicile to the UK as part of its global expansion strategy. This move could enhance its international presence and provide better access to global markets.

Conclusion While NU's current valuation metrics suggest it's trading at a premium, the stock is not overvalued when considering its exceptional growth rates, improving operational metrics, and massive market opportunity in Latin America's underbanked population. The mixed analyst ratings and recent price momentum suggest monitoring entry points carefully.

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 provided data and market analysis, here's a prediction for NU stock price in 2030:

NU stock is projected to reach $33-35 by 2030, driven by Nu Holdings' dominant position in Latin America's digital banking sector and strong customer growth trajectory. The company's active customer base is expected to double to 200 million users by 2030, while revenue per customer is forecasted to at least double from current levels, potentially leading to a 4x increase in total revenue.

The company's net income could grow five-fold to reach approximately $8.9 billion by 2034, supported by expanding profit margins and operational leverage in its digital-only banking model. With Nu Holdings currently serving over 50% of Brazil's adult population and showing strong growth potential in Mexico and Colombia, the company is well-positioned to capitalize on Latin America's large unbanked population.

NU has a total of 7686 employees.