Jefferies Cuts Futu Holdings Target to $170.50 After 34.3% Account Growth and 61% Net Income Slump
FUTU•Jefferies kept a Buy rating but cut its price target to $170.50 from $224.00 after reporting funded accounts rose 34.3% to 3.6 million and client assets climbed 47.2% to HK$1.22 trillion. Net income tumbled 61% to HKD 831 million due to a penalty, while ex‐penalty profit gained 36% to HKD 2.9 billion.
1. Rating and Price Target Revision
Jefferies maintained a Buy rating for Futu Holdings but lowered its price target to $170.50 from $224.00, reflecting balanced optimism on growth and caution on profitability after mixed quarterly outcomes.
2. Robust User and Asset Expansion
Funded accounts on the platform increased by 34.3% year-over-year to approximately 3.6 million, while total client assets expanded 47.2% to HK$1.22 trillion, indicating strong customer acquisition and deeper engagement.
3. Earnings Impacted by Regulatory Penalty
Reported net income fell 61% to HKD 831 million as a one-time administrative penalty weighed on results, yet excluding that charge underlying profit improved 36% to HKD 2.9 billion, highlighting core business resilience.
4. Share Repurchase Demonstrates Confidence
Under an $800 million buyback program, Futu repurchased $418 million of its own shares, a move underscoring management’s confidence in the company's long-term valuation and financial health.
