Nu Holdings upgraded to Overweight from Neutral at JPMorgan

JPMorgan upgraded Nu Holdings to Overweight from Neutral with a $9 price target. The analyst is more confident on the company’s “secular winning strategy” and sees the recent share price correction as a good entry point. The firm’s client survey shows Nu has 27% principality in Brazil or one out of four Brazilians use Nu as their main bank, the analyst tells investors in a research note. The firm says this high principality implies market share gains for multiple years as Nubank only has 0-14% share in most products it offers today. Nubank enjoys major cost advantages versus incumbents, meaning higher returns and better adaptability to “regulatory noise” in the long term, contends JPMorgan. Nu is now its top pick among Brazilian banks.