Citi analyst Judy Zhang lowered the price target on UP Fintech Holding Ltd. (NASDAQ: TIGR) to $5.00 (from $6.49) while maintaining a Buy rating.

The analyst comments "Up Fintech (Tiger Broker) reported 2Q24 non-GAAP NP of US$5.2m (-65% q-q/-66% y-y), weak due to US$13.2m one-off provision made for legacy HK stock pledge biz (discontinued in 2023). Mgmt. flagged that troubled exposure has been fully written off in 2Q, despite signed agreement from the client (name undisclosed by TIGR) to fully repay loan by end-2025; the troubled client’s controlling shareholder provided repayment guarantee, which enhances the chance of provision writeback. Operating profit (excl. one-off provision) was strong, +30.9% q-q/+68.2% y-y, thanks to solid trading volume and MFSL expansion in 2Q. TIGR added 48.9k new paying customers in 2Q24 (+69.8% q-q/+68.6% y-y) to bring 1H24 new paying customers to form 52% of mgmt. full-year 2024E guidance of 150k. Looking at 3Q24E, mgmt. sees further strength in trading volume and revenue momentum vs. 2Q. We trim DCF-derived TP to US$5.00 (from US$6.49) after earnings revision. Maintain Buy/High Risk rating."