Tag: barclays

What Do Analysts Think the One Year Price Target is for Nu Holdings (NU)

Analysts have a wide range of price targets for Nu Holdings in the next 12 months. The median price target is $7.85, with a high of $11.00 and a low of $4.00.

Here is a breakdown of the price targets from a few different analysts:

  • Morgan Stanley: $10.00
  • Barclays: $8.00
  • Credit Suisse: $7.50
  • Jefferies: $7.00
  • Evercore ISI: $6.50

These price targets reflect the analysts’ view of Nu Holdings’ growth prospects and valuation. The median price target of $7.85 suggests that analysts believe Nu Holdings is fairly valued at its current price. However, the high price target of $11.00 suggests that some analysts believe the company has the potential to grow significantly in the future.

NuBank vs Barclays – is NuBank Overvalued?

NuBank (Nu Holdings) is pushing the banking industry in Brazil, Mexico and Colombia.

I have been wanting to invest in NuBank for some time, but I have thought for the past year or so – that their market cap has become so large that they are simply just un-investable at these levels.

To prove this was the case I thought I would do a very simple side by side comparison with a legacy bank that is predominantly in key markets.

MetricNu HoldingsBarclays
Assets Under Management$10.2B$2.3T
Number of Customers30M48M
Revenues$1.2B$25.4B
EBITDA$-78M$9.3B
Countries350
Market Cap$35 billion$28 billion

I know NuBank is in 3 emerging markets – with at least 200 million people in those countries that are currently unbanked. However, even if NuBank was able to have 100 million customers – expand their product lines and then start to really focus on other markets – do you think they can really grow to the AUM or sheer network size of Barclays?

Or is this a perfect short sell position?