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On Wednesday, Citi analysts upgraded UP Fintech Holding Ltd. (NASDAQ:TIGR), also known as Tiger Broker, from a Sell to a Neutral rating, while also increasing the price target to $9.50, up from the previous target of $5.80. The upgrade follows UP Fintech’s announcement of a record-high quarterly non-GAAP net profit. The stock, currently trading at $9.69, has shown remarkable momentum with a 50% gain year-to-date, according to InvestingPro data.
The company reported a significant increase in its fourth-quarter non-GAAP net profit, which reached $30.47 million, marking a 51.7% rise from the previous quarter and a substantial growth compared to the same period last year. This growth was attributed to a surge in trading volume, which saw a 21.5% quarter-over-quarter increase and a 142.2% rise year-over-year. InvestingPro analysis shows the company maintains a healthy gross profit margin of 83.26%, with revenue growing at 21.52% over the last twelve months.
The firm’s operating profit, excluding share-based compensation, also saw a notable increase, growing by 29.4% from the previous quarter and by more than sevenfold year-over-year to $36.7 million in the fourth quarter of 2024. This performance was driven by robust trading sentiment in the US stock market, as indicated by the analyst’s comments. With a market capitalization of $1.81 billion and trading at a P/E ratio of 48.73, InvestingPro analysis suggests the stock is currently trading above its Fair Value.
Additionally, UP Fintech succeeded in adding 59.2 thousand new paying customers in the fourth quarter, which is a 17.2% increase from the previous quarter and a 51.4% increase from the same period the previous year. The total number of new paying customers for 2024 reached 187.4 thousand, surpassing the revised expectations of 180 thousand.
The Citi analyst’s decision to increase the discounted cash flow (DCF)-derived target price to $9.50 from $5.80 comes after revising earnings estimates. The report acknowledged the ongoing volatility and potential recession risks in the US stock market but also highlighted UP Fintech’s resilient trading volume, customer acquisition, and asset inflow trends year-to-date.
In other recent news, Up Fintech Holding Ltd reported strong financial results for the fourth quarter and full year of 2024. The company achieved a fourth-quarter revenue of $124.1 million, marking a 22.8% increase from the previous quarter and a 77.3% rise year-over-year. For the full year, revenue reached $391.5 million, a 43.7% increase compared to 2023. Despite missing earnings per share expectations, Up Fintech exceeded revenue forecasts, reporting $107.4 million against the anticipated $97 million. The company also launched new AI-driven products and expanded its cryptocurrency trading capabilities. Analysts noted that the company’s strategic advancements contributed to its robust financial performance. Additionally, Up Fintech received licenses in Hong Kong to operate as a virtual asset trading platform, further enhancing its presence in the cryptocurrency market. The company plans to continue its growth trajectory by focusing on high-quality user acquisition in 2025.
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