Skip to main content

Market Overview

BofA Initiates Buy For Futu Holdings On Growth Momentum

Share:
BofA Initiates Buy For Futu Holdings On Growth Momentum

Futu Holdings Ltd (NASDAQ: FUTU) provides a comprehensive online financial services platform that is expanding to capture investment demand from more countries, according to BofA Securities.

The Futu Holdings Analyst: Emma Xu initiated coverage of Futu Holdings with a Buy rating and a price target of $195.

The Futu Holdings Thesis: Although the company generated a 95% compounded annual growth rate in paying clients between 2016 and 2020 to 517,000, this represents merely 4.3% of its user base, Xu said in the initiation note.

The analyst mentioned 5 reasons for the Buy rating:

  • The company’s fast-growing client base and large addressable market
  • Operating leverage it has from cross-selling opportunities and economies of scale
  • Technology leadership given its “first-mover advantage, Tencent’s support and continued R&D investments”
  • Increased user engagement and retention from its social community
  • “Upside from U.S. self-clearing system in the near term and wealth management platform in the medium term.”

“We forecast EPS to grow at 57% CAGR in 2020-23E. Our 2021E earnings are based on 700k new paying clients, and QoQ decline in average assets per client and trading velocity,” she further wrote.

FUTU Price Action: Shares of Futu Holdings had risen by 0.69% to $144.80 at the time of publication Monday.

(Photo: Scott Graham via Unsplash)

Latest Ratings for FUTU

DateFirmActionFromTo
Apr 2021B of A SecuritiesInitiates Coverage OnBuy
Mar 2021CitigroupMaintainsBuy
Feb 2021CitigroupMaintainsBuy

View More Analyst Ratings for FUTU
View the Latest Analyst Ratings

 

Related Articles (FUTU)

View Comments and Join the Discussion!

Posted-In: BofA Securities Emma Xu financial servicesAnalyst Color Price Target Initiation Analyst Ratings

Latest Ratings

StockFirmActionPT
GOTUCitigroupDowngrades12.0
ATERRoth CapitalMaintains25.0
FMTXSVB LeerinkMaintains54.0
TALCitigroupDowngrades
PLXSLoop CapitalMaintains105.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com