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Investing.com - BofA Securities has raised its price target on Nu Holdings (NYSE:NU) to $16.00 from $14.00 while maintaining a Neutral rating on the digital banking company. The fintech giant, with a market capitalization of $63.3 billion, currently trades at $13.94, with analyst targets ranging from $9 to $20. According to InvestingPro analysis, the stock is currently trading near its Fair Value.
The price target increase comes after Nu Holdings’ shares appreciated 16% in the ten days following the release of its second-quarter 2025 results, outperforming Brazil’s Ibovespa Index, which remained flat during the same period. InvestingPro data shows the stock has maintained strong momentum, delivering a 24.35% return over the past six months.
Nu Holdings , commonly known as Nubank, reported second-quarter 2025 net income that exceeded company-compiled consensus expectations by 5%, while earnings before tax surpassed expectations by 1%. The company demonstrates robust growth with revenue increasing 20.69% year-over-year, while maintaining an attractive PEG ratio of 0.59, according to InvestingPro data.
BofA Securities noted that investors were encouraged by Nu Holdings’ net interest margin expansion, which came after three consecutive quarters of decline, suggesting potential for improved profitability.
The firm also highlighted that investors were relieved by benign asset quality trends at Nu Holdings, which could support stronger loan growth and profitability in upcoming quarters.
In other recent news, Nu Holdings reported strong financial results for the second quarter of 2025, with revenues reaching $3.7 billion, exceeding the forecasted $3.16 billion. The company also reported a net income of $637 million. Despite these positive earnings, Nu Holdings’ stock experienced a decline in after-hours trading. Wolfe Research raised its price target for Nu Holdings to $17, maintaining an Outperform rating, recognizing the company’s growth and strong customer base in Brazil. Additionally, Rothschild Redburn reiterated a Buy rating with a price target of $18, suggesting significant upside potential. The appointment of Armando Herrera as CEO of Nubank Mexico is seen as a potential positive development for the company. These recent developments highlight Nu Holdings’ strong market position and potential for future growth.
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