UBS Cuts Nu Holdings Price Target to $17.20 After Strong Q4 Results
UBS cut Nu Holdings’ price target from $18.40 to $17.20 on March 4. Q4 FY2025 net income rose 50% to $895 million on 45% revenue growth to $4.9 billion; efficiency ratio fell below 20% and deposits climbed 29% to $41.9 billion.
1. UBS Price Target Revision
On March 4, UBS lowered its 12-month price target for Nu Holdings from $18.40 to $17.20, reflecting a more cautious near-term outlook despite robust recent performance.
2. Q4 FY2025 Financial Highlights
For the quarter ended February, net income jumped 50% year-over-year to $895 million, while revenue grew 45% to $4.9 billion. Gross profit increased 38% to nearly $2 billion and return on equity reached 33%.
3. Operational Metrics and One-Time Items
Under a new methodology, Nu’s efficiency ratio fell to 19.9% for the first time. Total deposits rose 29% to $41.9 billion, unsecured lending balances topped $8 billion, and credit portfolio expanded to $32.7 billion. The results included a $58 million tax-related gain and $29 million in return-to-office charges.
4. Outlook and 2026 Transition
Founder and CEO David Velez-Osomo described 2026 as an inflection year, aiming to evolve Nu from a Latin American leader into a global digital banking platform across the U.S., Mexico, the Cayman Islands, Colombia and Brazil.