HSBC upgraded Nu Holdings to Buy on Brazil market push

HSBC analyst Neha Agarwala earlier today upgraded Nu Holdings to Buy from Hold with a price target of $10, up from $8.70. The analyst sees opportunity for Nubank to grow in the personal loans segment as asset-quality trends stabilize. The company’s foray into the payroll loan market should also enable it to grab some market share by virtue of having 84M customers in Brazil, the analyst tells investors in a research note. The firm also believes planned regulation on credit card rates “will not have a material impact on the profitability of the credit card product for industry participants.” The stock in afternoon trading is up 3% to $8.86.