Nubank Cut to Underperform, Price Target Slashed to $10 After CFO Exit
NU•BofA Securities downgraded Nubank from neutral to underperform and cut its price objective to $10 from $16 after CFO Guilherme Lago announced his July 13 departure. The firm cited rising execution risks and leadership turnover, trimming its P/E multiple to 13x 2026 EPS and flagging profit and provisioning pressures.
1. Rating Downgrade and Price Target Cut
BofA Securities downgraded Nubank’s rating to underperform from neutral and lowered its price objective from $16 to $10. The firm also trimmed its target P/E multiple from 18x to 13x based on a $0.89 2026 EPS forecast.
2. CFO Transition Details
Chief Financial Officer Guilherme Lago will step down effective July 13 and serve as a special advisor through August. He will be succeeded by Rob Livingston, former Visa North America CFO with over 30 years of financial services experience.
3. Leadership Turnover Concerns
Lago’s departure follows four other C-suite exits over two years, including the president, COO, CPO, CTO and chief credit officer. Analysts warn the string of departures heightens uncertainty around execution and management depth.
4. Revised 2026 Financial Outlook
Nubank’s net interest income is projected to rise to $15.33 billion in 2026, while provisions expense is expected to surge 80.9% to $8.04 billion. Total gross customer loans are forecast at $42.79 billion, with ROATE slipping to 26.4% and revenue growth of 58.2%.
