UPDATE: JPMorgan Upgrades Futu Holdings Limited (FUTU) to Overweight

JPMorgan analyst Katherine Lei upgraded Futu Holdings Limited (NASDAQ: FUTU) from Neutral to Overweight with a price target of $62.00 (from $55.00).

The analyst comments "We are upgrading Futu from Neutral to OW. Our positive view is based on the following: First, Futu's 2Q22 results beat expectation on the back of stable client growth, market share gain and a higher blended commission rate. Second, regulators in the US and China signed an agreement on cooperation in the inspection of China ADR stocks which partially eases de-listing risk, in our view. Third, our China Internet analyst Alex Yao expects China internet stocks to deliver further earnings beats in 3Q. We revise up 2022/23/24 estimates and roll-over our price target, which is now US$62, implying 26% upside from current levels. While we are conservative with our 2022E EPS 5% below consensus, we see potential upside risks to the consensus estimate given the aforementioned development. Futu is trading at 17x 2023E P/E, below the historical mean of 31x, and we believe the risk/reward is favorable.."

For an analyst ratings summary and ratings history on Futu Holdings Limited click here. For more ratings news on Futu Holdings Limited click here.

Shares of Futu Holdings Limited closed at $45.89 yesterday.

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