Susquehanna Anticipates Strong 2026 for Nu Holdings (NU) Amid Global Expansion, Stable Asset Quality

Nu Holdings Ltd. (NYSE:NU) is one of the best large cap stocks to buy under $50. On January 27, Susquehanna increased its price target for Nu Holdings to $22 from $19 with a Positive rating. The firm anticipates a strong 2026 as the company nears a global expansion phase, applying its growth model from Brazil, Mexico, and Colombia to the US market. Additionally, Susquehanna expressed confidence in the company’s asset quality, citing stable delinquency rates and strong unit economics across existing regions.

In Q3 2025, Nu Holdings Ltd. (NYSE:NU) reported having 127 million customers, which generated over $4 billion in revenue. Net income grew to $783 million, which was a 39% increase on a currency-neutral basis, driven by strong penetration in Mexico and continued expansion in Brazil. The company also introduced an AI-first strategy, using ML to enhance credit modeling and operational efficiency, which contributed to improved asset quality and a record Return on Equity (ROE) of 31%.

Despite these records, the company saw slight compression in net interest margins due to a shift toward lower-risk assets and increased funding costs in Brazil. Management remains focused on long-term growth, initiating credit limit increases expected to fully materialize by late 2026, and addressing regulatory concerns in Mexico regarding potential interchange fee caps.

Nu Holdings Ltd. (NYSE:NU) provides a digital banking platform in Brazil, Mexico, Colombia, the Cayman Islands, and the US. It offers spending solutions along with transactional solutions.

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.