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摩根大通将富途评级从中性上调至增持,目标价64.00美元

J.P.Morgan upgrades FUTU from Neutral to Overweight with a price target of $64.00

Moomoo News ·  Jan 18 03:42

On January 17, J.P.Morgan released a research report and upgraded Futu from Neutral to Overweight with a $64.00 price target.

J.P.Morgan pointed out the following highlights on FUTU:

  • Concerns on interest income overdone. Because: 1)Interest income to remain robust in the near term; 2)Negative impacts on interest income should be manageable; 3)Decline in deposit rate to be offset by volume growth.

  • Overseas expansion provides upside on clients and AUM growth. Overseas contributed ~30% of paying clients as of 3Q23, up from ~10% at end 2021.

  • Futu’s self-help programs on overseas expansion, product diversification (i.e., derivatives) and the cyclical recovery of overseas markets (i.e., US & JP) will likely lead to upside on trading volume growth.

J.P.Morgan upgraded Futu from Neutral to Overweight and set a price target of $64 based on a 15% 2024-26E EPS CAGR and 0.8x PEG.

Downside risks:

  1. Weakness in China tech stocks, leading to lackluster trading volume growth;

  2. Regulatory risk;

  3. Lower-than-expected growth in the number of paying clients.

Upside risks:

  1. Higher-than-expected growth in the paying client number;

  2. Stronger-than-expected trading volume growth;

  3. A better-than-expected operating efficiency improvement.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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