The actions of Nu Holdings Ltd. to double by end of 2026which will increase its market value above US$100 billionas the digital bank backed by Warren Buffett-owned Berkshire Hathaway Inc. expands throughout Latin Americaaccording to forecasts Morgan Stanley.
Nubankas the Brazilian online bank is known, could reach US$16 per share by the end of next year and US$20.9 in December 2026as it offers more products to customers in its largest market, Braziland is also growing in other countries, wrote analysts led by Jorge Kuri in a note dated October 18.
ThursdayNubank shares rose as much as 5.2% to US48.11which gave it a market value of US$38 billion. In the index MSCI Emerging Markets Latin Americajust another company is currently valued above US$100 billion: Brazil’s state-owned oil giant, Petrobraswhile Brazil’s largest bank Itaú Unibanco Holding SA is valued at US$49 billion.
“Nubank has a unique opportunity to gain greater wallet share among its clients in Brazil by cross-selling products that still show low penetration,” the analysts wrote, citing offerings that include payroll-backed loans. Furthermore, “the administration can successfully replicate your business model in Mexico and Colombia”.
The Central Bank of Brazil raises the growth projection for 2023
Nubank reported an adjusted profit of US$262.7 million for the second quarter and ended the period with 83.7 million clients in Brazil, Mexico and Colombia. The stock is still trading below its IPO priceas some investors question whether the company will deliver on promised growth.
Earlier this week, Jefferies called the bank “one of the most important disruptors worldwide” and noted that it could take advantage of a large group of people neglected by Mexican banks. In Brazil, The bank is already the main financial institution for 27% of Brazilians, up from 15% in 2021according to JPMorgan’s proprietary client survey.