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Investing.com - Barclays (LON:BARC) raised its price target on Futu Holdings Limited (NASDAQ:FUTU) to $232.00 from $176.00 on Thursday, while maintaining an Overweight rating following the company’s strong second-quarter performance. The fintech company, currently valued at $24.7 billion, has demonstrated remarkable momentum with a 123% year-to-date return. InvestingPro data shows the company maintains excellent financial health with a score of 4.18 out of 5 for profitability.
The financial services firm cited substantially better-than-expected revenue and margins in its analysis, primarily driven by higher trading activities. Futu reported 41% year-over-year growth in paying accounts and 8% quarter-over-quarter growth, while total assets under management (AUM) increased 68% year-over-year to $125 billion. The company’s impressive 54.5% revenue growth and industry-leading 93.2% gross profit margin underscore its operational efficiency. InvestingPro subscribers can access 8 additional key insights about Futu’s growth potential.
Barclays noted a significant milestone for Futu as customers outside Hong Kong now account for over 50% of the company’s business, with Singapore and the United States constituting the majority of international growth. Malaysia and Japan markets are also expanding rapidly for the financial technology company.
The firm highlighted Futu’s expansion into cryptocurrency trading, having entered most U.S. states for crypto trading in June, following its October launch in Hong Kong. According to Barclays, Futu’s daily crypto trading volume reached over $40 million in July.
Futu’s wealth management business grew by over 100% year-over-year in Q2, reaching assets under management of over $20 billion, further supporting Barclays’ view that Futu has potential to become the dominant brokerage and wealth management platform across Asia.
In other recent news, Futu Holdings Ltd. reported its second quarter 2025 earnings, surpassing expectations with both earnings per share (EPS) and revenue. The company achieved an EPS of 18.24 HKD, exceeding the forecasted 16.61 HKD, and reported revenue of 5.31 billion HKD, which was higher than the anticipated 4.84 billion HKD. These results reflect a notable performance for the period. Additionally, BofA Securities raised its price target for Futu Holdings to $200 from $172, maintaining a Buy rating. This upgrade was attributed to strong net asset inflows, which nearly doubled year-over-year, reaching approximately HKD170 billion in the first half of 2025. JPMorgan also increased its price target for the company to $200 from $185, citing earnings growth and maintaining an Overweight rating. These developments highlight Futu’s strong market performance and positive outlook from major financial firms.
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