Analysts maintain bullish ratings on NU despite valuation compression, citing strong fundamentals and $5 billion quarterly revenue.
Nu Holdings (NU) shares closed at $13.16, down roughly 30% from their highs, trading below the $20 threshold. The fintech firm, which disrupted banking in Brazil, Mexico, and Colombia, recently reported $5 billion in quarterly revenue for the first time.
Despite the pullback, Wall Street analysts rate NU with 4 strong buys and 15 buys, citing a 30.1% return on equity and undervalued ratios. Management attributes the valuation compression to seasonality and mix, not fundamental asset quality concerns.
The stock’s decline contrasts with its strong operational performance, leading some to view the drop as a potential buying opportunity rather than a reflection of business weakness.