Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - Morgan Stanley (NYSE:MS) has raised its price target on Futu Holdings Limited (NASDAQ:FUTU) to $160.00 from $140.00 while maintaining an Overweight rating on the stock. The fintech company, now valued at $18.2 billion, has seen its shares surge nearly 98% over the past year, with particularly strong momentum in recent months according to InvestingPro data.
The investment bank cited Futu’s competitive edge in cryptocurrency as a key factor behind the more optimistic outlook for the financial technology company.
Morgan Stanley highlighted several strengths that position Futu favorably in the crypto space, including "a trusted brand, one-stop service, along with top class user experience and a full set of licensing."
The firm expects Futu to see "meaningful revenue contribution" as the company increases cryptocurrency adoption among its users.
This cryptocurrency business is viewed as "a multiyear driver" for Futu’s investment case, suggesting long-term growth potential beyond immediate financial results.
In other recent news, Futu Holdings Limited reported first-quarter earnings with a net income of HK$2.14 billion ($275.4 million), marking a 107% increase from the previous year. The company’s revenue rose 81.1% year-over-year to HK$4.69 billion, slightly below analyst estimates of HK$4.7 billion. Futu added approximately 262,000 funded accounts in the first quarter, bringing its total to 2.67 million, a 41.6% increase from last year. Morgan Stanley responded to these results by lifting its price target for Futu to $140, maintaining an Overweight rating due to the firm’s strong earnings and positive future outlook. Jefferies also raised its price target to $139 while keeping a Buy rating, citing Futu’s strong client acquisition momentum and product expansion. Futu has been expanding its international presence, with its subsidiary Moomoo entering the New Zealand market and plans to roll out its AI-powered platform, Futubull AI, overseas. The company is also exploring the cryptocurrency market, aligning with global digital currency trends. Both Morgan Stanley and Jefferies highlighted Futu’s strategic growth and technological advancements as key factors in their positive outlooks.
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