Morgan Stanley Maintains a Buy Rating on Nu Holdings (NU), Kept The PT Unchanged

Nu Holdings Ltd. (NYSE:NU) is one of the 12 Best Stocks to Buy and Hold for the Long Term. On June 13, analyst Jorge Kuri from Morgan Stanley reiterated a Buy rating on Nu Holdings Ltd. (NYSE:NU) with a price target of $18. The analyst based his bullish sentiment on the company’s potential to capitalize on the payroll loan market.

During the fiscal first-quarter earnings call for 2025, the management of Nu Holdings Ltd. (NYSE:NU) noted its public payroll loans gained traction growing 50% quarter-over-quarter. The company sees further unique opportunities in the new private payroll products in Brazil. Analyst Jorge Kuri highlighted he sees a significant opportunity for the company to gain as much as 10% of the payroll market by 2026.

Management noted its market share was still below 1% as of the first quarter, however, Kuri believes the market projections of 3% to 4% are underestimates of the company’s true potential. He noted its large customer base, efficient digital distribution model, and cost-effective pricing strategy to be key competitive advantages in gaining the expected market share.

Nu Holdings Ltd. (NYSE:NU) is a Brazil-based holding company that provides digital banking services. Its services include customized credit lines, mobile payments, interest-earning savings accounts, investment products, and more.

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.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.