Analysts Optimistic on Nu Holdings (NU)

Nu Holdings Ltd. (NYSE:NU) is one of the 14 Most Promising Fintech Stocks to Invest In. On December 4, TipRanks reported that Goldman Sachs analyst Tito Labarta reaffirmed a Buy rating on Nu Holdings Ltd. (NYSE:NU) with a price target of $21.

Earlier, on November 25, BofA Securities increased its price target on Nu Holdings Ltd. (NYSE:NU) from $16 to $18 and reiterated a Neutral rating on the stock. This update came after investor meetings in New York and Boston with the company’s Investor Relations Officer, Guilherme Souto, who shared an optimistic view of the company’s business.

BofA Securities noted that the company’s AI initiatives are supporting the re-acceleration of growth in Brazil while also managing risks. The research firm believes this is valuably extending Nu Holdings Ltd.’s (NYSE:NU) first growth curve.

Additionally, BofA Securities pointed out that the company’s operations in Mexico have hit a key turning point, shifting from building up to scaling up. This is the second growth curve for Nu Holdings Ltd. (NYSE:NU).

The research firm noted that the company has applied for a US national bank charter, which could be a transformational opportunity. According to BofA Securities, this could possibly represent the third growth curve for Nu Holdings Ltd. (NYSE:NU). The company’s management is still focused on growing its operations in Brazil and Mexico in the short and medium term.

Nu Holdings Ltd. (NYSE:NU) is a financial technology company that operates a digital banking platform. The company has a fully digital model and offers a wide range of financial services to customers in Brazil, Mexico, and Colombia.

While we acknowledge the potential of NU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.