What Happened?
Shares of digital banking platform Nubank (NYSE: NU) jumped 1.7% in the afternoon session after a series of positive analyst actions and reports of a potential billion-dollar acquisition.
The positive momentum follows a recent price target increase from Susquehanna, which raised its target to $17.00 while maintaining a Positive rating. This is the latest in a string of favorable analyst updates, including recent upgrades from Citigroup and Banco Bradesco BBI. Adding to the bullish sentiment, reports surfaced that Nubank is exploring a billion-dollar acquisition of Brubank, which could significantly expand its presence in the Argentine digital market. This optimism is supported by the company's strong fundamentals, having grown its customer base by 17% to 123 million over the last year and increased its net income by 38% to nearly $1.2 billion in the first half of 2025.
After the initial pop the shares cooled down to $14.80, up 1.2% from previous close.
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What Is The Market Telling Us
Nubank’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 3% on the news that the company received a price target increase from BofA Securities, which cited improving profitability trends. BofA Securities increased its price target on the digital banking company to $16 from $14, while maintaining a Neutral rating. The firm noted that investors were encouraged by Nu's recent second-quarter results, specifically pointing to an expansion in its net interest margin, which suggests improving profitability after three quarters of decline.
Analysts also highlighted positive asset quality trends, which could pave the way for stronger loan growth in the future. The positive sentiment builds on a recent upgrade from Citi, which on August 19 raised its rating on the stock from Sell to Buy and doubled its price target to $18, citing a string of strong quarterly performances despite macroeconomic headwinds.
Nubank is up 39.3% since the beginning of the year, and at $14.80 per share, it is trading close to its 52-week high of $15.89 from November 2024. Investors who bought $1,000 worth of Nubank’s shares at the IPO in December 2021 would now be looking at an investment worth $1,433.
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