Does Global Expansion and Fresh Institutional Backing Reinforce the Bull Case for Nu Holdings (NU)?

• In recent days, Nu Holdings announced continued strong customer growth and ambitious global expansion plans, including a U.S. bank charter application and full Mexican banking license, while institutional investor Hamilton Lane Advisors revealed a new US$18 million stake in the company. Analyst sentiment has also remained positive, with several research firms raising their outlooks and a consensus recommendation of “Outperform.”
• Hamilton Lane’s sizable investment and Nu Holdings’ push for banking licenses in the U.S. and Mexico highlight increasing confidence in its ability to disrupt traditional banking across multiple markets.
• We’ll explore how Nu Holdings’ accelerated global expansion and growing institutional backing impact its growth outlook and competitive positioning.

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Nu Holdings Investment Narrative Recap

Staying invested in Nu Holdings means believing in the long-term shift toward digital banking in Latin America, where rapid customer growth, ongoing geographic expansion, and innovative services drive the story. While a wave of positive analyst sentiment and rising institutional support strengthen the appeal, short-term stock momentum has softened, with technical signals suggesting further downside risk is possible, this is not expected to materially alter the most important near-term catalyst, which is progress on U.S. regulatory approvals. The company’s recent application for a U.S. national bank charter stands out as the most relevant announcement, as it directly connects to Nu Holdings’ broader expansion plans and is central to unlocking fresh growth avenues while confronting regulatory risk and operational complexity. Yet, for every push into new territory, investors should also ask what growing exposure to subprime consumer lending could mean if economic cycles shift…

Read the full narrative on Nu Holdings (it’s free!)

Nu Holdings’ narrative projects $33.0 billion revenue and $6.1 billion earnings by 2028. This requires 78.1% yearly revenue growth and a $3.8 billion earnings increase from $2.3 billion today.

Uncover how Nu Holdings’ forecasts yield a $16.99 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Fair value estimates from 45 Simply Wall St Community members stretch from US$9.28 to US$59.35 per share, reflecting a wide spectrum of views. As you consider these varied expectations, remember that increasing competition from incumbent banks and fintech challengers could ultimately weigh on Nu Holdings’ future revenue growth and customer acquisition.

Explore 45 other fair value estimates on Nu Holdings – why the stock might be worth over 3x more than the current price!

Build Your Own Nu Holdings Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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