Citi upgrades UP Fintech stock to Buy on crypto business potential

Published 22/07/2025, 09:48
Citi upgrades UP Fintech stock to Buy on crypto business potential

Investing.com - Citi upgraded UP Fintech Holding Ltd. (NASDAQ:TIGR) from Neutral to Buy and raised its price target to $14.00 from $9.50 on Tuesday. The stock, currently trading at $10.42, has demonstrated remarkable momentum with a 142% return over the past year, according to InvestingPro data.

The upgrade comes as U.S. and Hong Kong market conditions have performed better than anticipated, while the company’s cryptocurrency business launch could potentially boost overall retail client trading activities. This optimism appears well-founded, as InvestingPro data shows UP Fintech’s revenue growing at 61% year-over-year, with a robust gross profit margin of 85%.

Citi revised its 2025-2027 earnings forecasts upward by 18%-29% and projects UP Fintech’s 2024-2027 earnings compound annual growth rate could reach 24% when factoring in potential revenue from VASP and VATP licenses.

The new price target is based on a 2026 target price-to-earnings ratio of 19.2x applied to an increased 2026 earnings per ADS estimate of $0.72.

Citi noted that UP Fintech has not been re-rated as aggressively compared to competitor Futu, suggesting the stock’s valuation and remaining upside remain attractive.

In other recent news, UP Fintech Holding Limited reported strong earnings for the first quarter of 2025, surpassing analyst expectations. The company announced adjusted earnings per ADS of $0.20, with revenue reaching $122.6 million, marking a 55.3% increase year-over-year. However, revenue was slightly below the previous quarter. UP Fintech experienced significant customer growth, adding 60,900 new funded accounts, bringing the total to 1,152,900, a 23.5% increase from the previous year. The total account balance rose by 39.5% year-over-year to $45.9 billion. Net income attributable to shareholders saw a significant rise of 146.7% year-over-year to $30.4 million, while non-GAAP net income increased by 145% to $36 million. The company also reported strong asset inflows of $3.4 billion, primarily from retail users, and noted growth in its Hong Kong business. UP Fintech has achieved 40% of its 2025 target for new funded accounts and is expanding its product offerings, including new cryptocurrency and institutional trading capabilities.

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