On November 25, J.P.Morgan released a research report and maintained $Futu Holdings Limited(FUTU.US)$ with an Overweight rating and $100 price target.
J.P.Morgan pointed out in the research report:
Client growth is a structural driver. We expect Futu to achieve paying clients growth by penetrating existing users (15.5mn) and expanding into new markets (e.g. Singapore).
The margin financing business has seen steady growth regardless of stock market performance.
Fast expansion into the wealth management business may drive future business growth and increase user stickiness.
Risks to the downside:
1) weakness in China tech stocks, leading to lackluster trading volume growth;
2) regulatory risk;
3) lower-than-expected paying client growth.
Risks to the upside:
1) higher-than-expected paying client growth;
2) stronger-than-expected trading volume growth;
3) better-than-expected operating efficiency improvement.