Nu .(US:NU) Finbold·2024-12-30 11:57Core Insights - Wall Street analysts maintain a moderately bullish outlook on Nu Holdings, citing its strong market position, growth metrics, and improving profitability [1][19] - Despite a 35% decline in stock price from its mid-November peak, Nu Holdings continues to capture a significant share of Latin America's unbanked population, with a market capitalization of $49.23 billion [5][19] Financial Performance - Nu Holdings reported a 56% year-over-year revenue increase, reaching $2.9 billion, driven by higher customer activity rates of 84% and a 25% increase in average revenue per active customer (ARPAC) to $11 [7] - The lending portfolio expanded by 97% year-over-year, with credit card receivables rising by 33%, and gross profit increased by 67% to $1.3 billion, improving gross margins to 46% [10] - The company added 5.2 million new customers in Q3 2024, bringing the total to 109.7 million, a 23% increase year-over-year [15] Market Position and Expansion - Brazil remains the primary market for Nu Holdings, while expansions into Mexico and Colombia have contributed to growth, with approximately 9 million customers in Mexico and over 2 million in Colombia [9][16] - The launch of the Cuenta Nu product in Colombia, a digital savings account with no fees, has driven customer growth [16] Analyst Ratings and Market Sentiment - Morgan Stanley and Jefferies analysts reaffirmed their "Buy" ratings with target prices of $18 and $18.90, respectively, highlighting the company's strategic positioning [13] - The stock's decline has been influenced by macroeconomic pressures in Latin America, including currency volatility, inflation, and rising interest rates [11][17] - Berkshire Hathaway's partial reduction of its stake in Nu Holdings, selling 19.3% of its position, has contributed to investor concerns despite still holding a 0.3% stake [12][18]