JPMorgan upgrades Futu on attractive valuation after selloff

JPMorgan upgraded Futu Holdings to Overweight from Neutral with an unchanged price target of $64. The shares have fallen by 25% in the past two months due to a moderate miss in Q3 results and downside risk on net interest income on the back of rate cut expectations, the analyst tells investors in a research note. The firm thinks the concerns are overdone, saying only half of Futu’s NII is rate sensitive and downside will be compensated by higher trading volume. JPMorgan also believes the company will benefit from an overseas expansion. It finds the stock’s valuation attractive at current levels.