Citi Upgrades Nu Holdings (NU) to Buy After Strong Earnings Momentum

Nu Holdings Ltd (NYSE:NU)  is one of the best stocks to invest in for long-term growth.. On August 19, Citi upgraded Nu Holdings Ltd (NYSE:NU) from Sell to Buy, while also doubling its price target for the company from $9 to $18. Despite the stock surging over 15% since the Brazilian digital banking company reported its quarterly results on August 14, Citi’s implied upside still stands at 29.6%, with the stock trading at $13.89.

Citi noted that the company strung a few strong quarters together, despite macroeconomic concerns. The firm said that the strong quarters were a testament to the bank’s ability to navigate well through tough periods, but also to accelerate in key portfolios while maintaining good asset quality.

Citi believes that the company’s earnings growth could accelerate in Mexico and Colombia. The firm noted that Nu’s efficiency with also help improve its return on equity. Nu’s return on equity stands at 28%, standing out from its rivals.

The company generated $3.7 billion in revenue in Q2 2025, growing 32.1% year-over-year. The company said that its revenue has been growing at an 85% annualized growth rate since 2021. Yet, Nu trades at a reasonable forward P/E ratio of 25x.

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