Analyst Thiago Batista from UBS maintained a Hold rating on Nu Holdings and keeping the price target at $16.00.
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Thiago Batista has given his Hold rating due to a combination of factors influencing Nu Holdings’ current market position. The company’s loan portfolio is expected to continue growing, driven by an increase in credit card and consumer loans, which aligns with the broader expansion trends in the Brazilian financial system. However, there are concerns about asset quality, as indicated by rising non-performing loan (NPL) ratios for credit cards and personal loans, which could exert pressure on the company’s financial health.
Additionally, while Nu Holdings’ Mexican operations have shown improvement with reduced net losses, the overall asset quality trends remain a concern. The company’s earnings forecast for the third quarter suggests growth, but it falls short of market consensus, indicating potential challenges in meeting investor expectations. Furthermore, the valuation of Nu Holdings, trading at 20 times the 2026 estimated price-to-earnings ratio, supports a neutral stance, as it reflects a balanced risk-reward scenario at current price levels.