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UPDATE: China Renaissance Assumes UP Fintech Holding Ltd. (TIGR) at Hold

May 19, 2022 3:41 AM EDT
Get Alerts TIGR Hot Sheet
Price: $5.39 +4.66%

Rating Summary:
    2 Buy, 1 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 2 | Down: 23 | New: 24
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(Updated - May 19, 2022 4:03 AM EDT)

China Renaissance analyst Cindy Wang assumes coverage on UP Fintech Holding Ltd. (NASDAQ: TIGR) with a Hold rating and a price target of $3.80.

The analyst comments "We forecast a revenue decline of 21% YoY in 2022E, impacted by falling trading volume and declining client assets, amid a slowdown in new paying customers owing to the sluggish stock market. We forecast adjusted net profit to break even in 2022E on opex savings. We forecast gradual recovery in earnings in 2023E/ 24E to US$20mn/ US$29mn with net profit margin at 8.0%/9.0%, helped by an increase in new paying customers driving higher trading volume and client assets, as well as growing demand for MFSL, alongside cost savings from establishing full self-clearing. We apply a 40.7x target multiple to 2022E normalized EPS to derive our TP of US$3.80, assuming 7% net profit margin in 2022E and a 2022E-24E normalized earnings CAGR of 40.7%, or 1x 2022E PEG. We assume coverage with a HOLD rating as TIGR’s lack of scale weighs on profitability in 2022E."

For an analyst ratings summary and ratings history on UP Fintech Holding Ltd. click here. For more ratings news on UP Fintech Holding Ltd. click here.

Shares of UP Fintech Holding Ltd. closed at $3.81 yesterday.


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