Goldman predicts this global digital bank that just launched in the U.S. could jump nearly 70%

The investment firm has a buy rating on the Brazil-based banking name.

Goldman predicts this global digital bank that just launched in the U.S. could jump nearly 70%

TL;DR

  • Goldman Sachs has a buy rating on Nu Holdings with a $23 price target, suggesting potential for 69% upside.
  • Nu Holdings has entered the U.S. market, which has a consumer lending market 7 times larger than Brazil's.
  • Goldman Sachs believes Nu's ultra-low cost digital approach and strong consumer experience can lead to success in the U.S.
  • The firm estimates Nu could boost earnings by $500 million for every 2% gain in U.S. market share.
  • Potential risks include high marketing costs, but Nu has historically managed growth without overspending.
  • 15 out of 18 analysts covering Nu Holdings have a buy or strong buy rating.