Futu Holdings (NASDAQ: FUTU) Receives Price Target Increase to $90.00 by BofA Securities: What Investors Need to Know
BofA Securities has adjusted its outlook on Futu Holdings Limited, raising the stock's price target to $90.00 from $80.20 while maintaining a Buy rating. The revision comes after significant quarter-to-date increases in major Hong Kong/China ADR indices and major U.S. indices, indicating potential trading opportunities.
The positive guidance issued by Futu Holdings for the third quarter, along with market conditions following the Federal Reserve's rate cut, could enhance client asset inflows and trading activities for the company. BofA Securities has updated Futu's earnings estimates for 2024-2026 and increased the target P/E multiple to 18x.
Overall, BofA Securities reiterated its Buy rating on Futu Holdings, citing diversified market exposure, robust client growth, positive overseas market developments, and new product offerings. Futu Holdings reported significant growth in the second quarter of 2024, with a rise in paying clients and net income.
InvestingPro Insights align with BofA Securities' optimistic assessment, highlighting Futu's market capitalization and P/E ratio. The company has experienced strong returns over the last week and month, indicating robust trading activities and market presence. Analysts predict Futu will be profitable this year, supporting the Buy rating and raised price target from BofA Securities.
For more in-depth analysis, investors can access additional InvestingPro Tips on Futu Holdings Limited.