Bullish indicating open at $55-$60, IPO prices at $37
On Monday, BofA Securities announced the initiation of coverage on UP Fintech Holding Ltd. (NASDAQ: TIGR), commonly known as Tiger Brokers, with a Buy rating and a price target set at $8.66. The move comes as the firm acknowledges UP Fintech’s position as a prominent online brokerage service provider. With a market capitalization of $1.4 billion and impressive year-to-date returns of 18.4%, UP Fintech has caught the attention of analysts. According to InvestingPro data, the stock has demonstrated significant momentum, gaining over 115% in the past six months.
Tiger Brokers, which began by catering to the overseas investment needs of the mainland China population, has since expanded its services to include markets such as Singapore, the United States, Australia, New Zealand, and Hong Kong. The firm’s significant growth in Singapore, where it has garnered more than half of its funded clients and client assets, was highlighted by BofA Securities. The company’s expansion strategy has yielded strong results, with revenue growing 21.5% in the last twelve months and maintaining an impressive gross profit margin of 83.3%.
The research firm’s positive outlook on UP Fintech is based on several factors. Firstly, Tiger Brokers is seen as a major beneficiary of the burgeoning wealth market in Asia. Secondly, the company is recognized for offering competitive products and services in its key markets. InvestingPro analysis reveals the company maintains a healthy financial position with a strong Altman Z-Score of 3.97, indicating low bankruptcy risk. For deeper insights into UP Fintech’s financial health and growth prospects, subscribers can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Furthermore, BofA Securities notes that UP Fintech’s business model boasts high operating leverage and has demonstrated improved profitability. The firm also anticipates that UP Fintech’s earnings for the fourth quarter of 2024 and the full year of 2025 are likely to surpass consensus estimates significantly.
Finally, the potential for UP Fintech’s introducing broker business to drive additional revenue upside was also mentioned as a contributing factor to the firm’s optimistic stance. This comprehensive analysis by BofA Securities underscores the perceived strengths of UP Fintech’s business model and market position.
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