JPMorgan analysts upgraded Futu Holdings Restricted (NASDAQ:) from Impartial to Obese with a value goal of $92.00 (from $62.00).
The analysts remark: “Futu has rallied 41% up to now three months, outperforming the NASDAQ by 38ppt. However we see additional upside to the inventory, for the next causes. First, we see upside danger to Futu’s EPS resulting from sturdy consumer progress, asset circulate and transaction quantity. Second, our evaluation suggests constructive correlation between Futu’s PE a number of and its new consumer progress. We consider the restoration in new paying purchasers progress (200% in 1Q24 vs -8% in FY23) will drive additional re-rating. Third, valuation remains to be undemanding: Futu at the moment trades at 16.1x PE, vs historic imply of ~25x or ~23x when its new paying consumer progress was 0% to 100% (+79% in 2024). We increase 24e-26e EPS by 7%/15%/16%. Regardless of Futu’s constructive touch upon its Crypto enterprise, which shall be launched in mid-2024, we consider zero contribution to its EPS and PE a number of, thus there might be upside danger. Our end-24 PT of $92 suggests 24e PE of 18x and ~23% upside to the present share value. We improve the inventory to OW.”