UBS Lowers Nu Holdings (NU) Price Target To $17.2

Core Insights - Nu Holdings (NYSE:NU) is recognized as one of the 13 most profitable growth stocks to consider for investment at present [1] - UBS has revised Nu Holdings's price target down from $18.4 to $17.2 [1][7] Financial Performance - For the fourth quarter of FY 2025, Nu Holdings reported a net income of $895 million, marking a 50% increase year-over-year [1] - The return on equity for the quarter was 33% [1] - Quarterly revenue increased by 45% year-over-year, reaching $4.9 billion [1] - Gross profit rose by 38% to nearly $2 billion [1] - The efficiency ratio improved to 19.9%, falling below 20% for the first time [1] - Total deposits grew by 29% to $41.9 billion [1] Lending and Credit Portfolio - The company achieved record originations of $4 billion during the quarter, with unsecured lending balances exceeding $8 billion [2] - The credit portfolio expanded to $32.7 billion, supported by the strongest quarterly growth in credit cards since 2023 [2] Strategic Outlook - David Velez-Osomo, Founder, Chairman & CEO, indicated that 2026 will be a pivotal year for the company as it aims to transition from a Latin American leader to a global digital banking platform [3] - The company operates as a digital banking platform across multiple countries, including the United States, Mexico, the Cayman Islands, Colombia, and Brazil, offering various financial solutions [4]