Nubank shares rose almost 5% on Monday (3), after analysts began to cover the bank recommending the purchase of shares with, mostly, positive views.
Analysts at Goldman Sachs began covering the stocks with a target price of $15, while UBS BB gave a target price of $12.50 and Citi, $12.
The combination of a large client base and customer-oriented culture offers the digital bank a competitive advantages in the Latin American banking sector, said analysts at UBS BB. Still, they added that “there is a long way to go, with regulatory and implementation risks.”
Goldman Sachs predicted net income of $3.4 billion for Nubank and return on equity (ROE) of 39% through 2025, saying this is “consistent with the profitability of other digital banks globally and above levels of 20% to 30% profitability that traditional retail banks had in Brazil“.
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Nubank debuted on the New York Stock Exchange (NYSE) in December, at $9 per share. At 1:46 pm (Eastern time) this Monday, the share rose 4.9%, to $ 9.84.
(Translated bt LABS)
