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Investing.com - Rothschild Redburn has reiterated its Buy rating on Nu Holdings (NYSE:NU) with a price target of $18.00, suggesting over 30% upside potential from the current price of $13.62. The fintech giant, now valued at $63.3 billion, has already delivered an impressive 31.47% return year-to-date. InvestingPro analysis suggests the stock is trading slightly above its Fair Value.
The firm views the appointment of Armando Herrera as CEO of Nubank Mexico as a potential turning point for the company’s operations in that market, which has historically been a drag on margins.
Rothschild Redburn notes that Mexico’s financial metrics are improving, with accelerating loan growth, better credit quality, and a customer base that appears more sophisticated than initially assumed.
The research firm highlights that deposits have been outpacing loans by more than 5-to-1 in Mexico, with millions of cards remaining underutilized, suggesting significant untapped monetization potential.
Rothschild Redburn describes Nu Holdings as "one of the most compelling global Fintech names" and suggests Herrera’s arrival could trigger a strategic shift from cautious growth to more aggressive monetization in the Mexican market.
In other recent news, Nu Holdings reported strong financial results for the second quarter of 2025. The digital banking company achieved revenues of $3.7 billion, exceeding the projected $3.16 billion. Additionally, Nu Holdings reported a net income of $637 million. Wolfe Research has raised its price target for Nu Holdings to $17, up from $16, while maintaining an Outperform rating. The firm recognizes Nu Holdings as a significant player in Brazil’s digital banking sector, with approximately 114 million customers and a monthly active rate of 83.1%. These developments reflect Nu Holdings’ continued growth and strong market presence.
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