Nu Holdings (Nubank) (NU) PT Raised to $14 at Susquehanna

Susquehanna analyst James Friedman raised the price target on Nu Holdings (Nubank) (NYSE: NU) to $14.00 (from $12.00) while maintaining a Positive rating.

The analyst commented: "This was another strong quarter for NU, delivering accelerating KPIs that included a sharp increase in Active Customers up 27% (+27% last quarter), accelerated ARPAC up 30% to $11.40 (+23% last quarter to $10.60), revenues up 69% (66% last quarter) and sharply expanding net margins (16.2% vs. 11.3% in 1Q23), driven in part by flat cost to serve ($0.9 per month). Intensifying their push into Mexico where card penetration is low, they approached 6.6 mln AOF (6 mln last quarter) and intend to further expand there in '24. We are raising estimates, and our price target rises to $14 based on a peer group PEG of 0.5x. We reiterate our Positive rating. Our aftercall notes with the CFO are available upon request, the substance of which is captured in this note."

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