From Financial Modeling Prep: 2024-12-02 12:21:00

Nu Holdings (NYSE:NU) saw a 6% drop in shares today as Citi downgraded the stock to Sell, with a new price target of $11. Concerns over high valuation and slowing growth in Brazil prompted the move.

Despite strong profitability, Nu Holdings’ valuation may be unsustainable without accelerated growth in Brazil. With operations in Brazil slowing down, profit-taking opportunities have emerged.

Shares of Nu Holdings were trading at high levels, with a PE ratio of 24.2x and a PB ratio of 6.2x. Analysts emphasized the need for robust growth in Brazil to support such valuations, which have now slowed. Diversification efforts may take time to impact profitability.



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