JPMorgan Chase & Co. Forecasts Strong Price Appreciation for NU (NYSE:NU) Stock

Key Points

• JPMorgan Chase & Co. raised its price target on NU from $18 to $20 and kept an overweight rating, implying about 42.5% upside from the prior close.
• Analyst sentiment is mixed overall: while some firms lowered targets or issued cautious ratings, MarketBeat says NU still has a Moderate Buy consensus with an average price target of $17.24.
• NU recently reported revenue above expectations but slightly missed EPS estimates, and it also announced a share repurchase plan, which can signal management believes the stock is undervalued.

NU (NYSE:NU - Get Free Report) had its target price upped by analysts at JPMorgan Chase & Co. from $18.00 to $20.00 in a report released on Tuesday,Benzinga reports. The firm presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price target suggests a potential upside of 42.50% from the company's previous close.

A number of other research analysts have also weighed in on the stock. UBS Group decreased their price target on shares of NU from $18.10 to $16.90 and set a "buy" rating on the stock in a research note on Wednesday, May 20th. Bank of America reiterated an "underperform" rating on shares of NU in a research note on Tuesday, June 2nd. Scotiabank cut NU to a "sector perform" rating and set a $13.00 target price for the company. in a report on Wednesday, June 3rd. Itau BBA Securities restated an "outperform" rating on shares of NU in a research report on Tuesday, March 17th. Finally, Needham & Company LLC assumed coverage on NU in a research note on Friday, June 26th. They issued a "buy" rating and a $17.00 price target on the stock. Ten equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $17.24.

NU Price Performance

Shares of NYSE NU opened at $14.04 on Tuesday. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.58 and a current ratio of 0.58. The firm has a fifty day moving average of $13.00 and a 200 day moving average of $14.95. The firm has a market cap of $68.15 billion, a PE ratio of 21.59, a PEG ratio of 0.54 and a beta of 0.95. NU has a one year low of $11.20 and a one year high of $18.98.

NU (NYSE:NU - Get Free Report) last posted its quarterly earnings data on Friday, May 15th. The company reported $0.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.20 by ($0.01). The company had revenue of $5.32 billion for the quarter, compared to analysts' expectations of $5.06 billion. NU had a net margin of 18.20% and a return on equity of 30.91%. As a group, research analysts predict that NU will post 0.83 EPS for the current fiscal year.

NU announced that its board has initiated a share repurchase plan on Thursday, June 4th that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to purchase shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board of directors believes its shares are undervalued.

Insider Activity at NU

In related news, Director Anita M. Sands sold 21,000 shares of the stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $12.24, for a total value of $257,040.00. Following the completion of the sale, the director owned 162,150 shares of the company's stock, valued at approximately $1,984,716. This trade represents a 11.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Institutional Trading of NU

Several large investors have recently added to or reduced their stakes in NU. Baillie Gifford & Co. boosted its position in shares of NU by 2.3% during the 4th quarter. Baillie Gifford & Co. now owns 257,256,952 shares of the company's stock valued at $4,306,481,000 after acquiring an additional 5,797,365 shares during the last quarter. Morgan Stanley increased its position in NU by 2.9% during the fourth quarter. Morgan Stanley now owns 121,350,701 shares of the company's stock worth $2,031,411,000 after purchasing an additional 3,419,077 shares during the last quarter. State Street Corp raised its stake in NU by 0.3% during the third quarter. State Street Corp now owns 91,478,395 shares of the company's stock worth $1,464,569,000 after purchasing an additional 239,660 shares during the period. Bank of America Corp DE boosted its holdings in NU by 8.6% in the 1st quarter. Bank of America Corp DE now owns 45,966,932 shares of the company's stock valued at $660,545,000 after purchasing an additional 3,656,945 shares during the last quarter. Finally, Norges Bank purchased a new stake in shares of NU in the 4th quarter valued at approximately $763,792,000. 84.02% of the stock is currently owned by hedge funds and other institutional investors.

NU Company Profile

Nu Holdings Ltd NYSE: NU, commonly known by its consumer brand Nubank, is a Latin American financial technology company that provides digital banking and financial services through a mobile-first platform. The company’s core offerings include no-fee digital checking accounts, credit cards, personal loans, payments and transfers, and a range of savings and investment products. Nubank emphasizes a streamlined customer experience delivered via its smartphone app, combined with data-driven underwriting and automated customer service tools.

Founded in 2013 by David Vélez, Cristina Junqueira and Edward Wible, Nu grew rapidly by targeting underbanked and digitally savvy consumers in Latin America with low-fee, transparent products.

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