NEW YORK, March 11, 2026, 10:18 EDT
Nu Holdings shares barely budged in early New York trading Wednesday, with the stock at $14.88 after Bank of America shaved down its price target. Investors appear wary over potential spending as the Brazilian digital lender pushes to expand beyond its main markets.
That’s significant: Nu just posted its best-ever quarterly profit, but shares still haven’t found their footing. BofA pointed out Monday that Nu is off 12.9% so far this year, and down another 4% in the last month. The bank attributes the drag to rising operating expenses and increased loan-loss provisions—set aside for possible defaults—which have weighed on sentiment despite a strong Q4.
This one seemed isolated to the company itself. Shares of Brazil-focused fintechs PagSeguro and Inter posted gains earlier in the session, with Nu holding steady, not budging much.
On Tuesday, Nu tapped former TikTok exec Kim Farrell for the role of global marketing director, handing her the reins on brand architecture, campaigns, and partnerships as the company pushes to ramp up its international reach.
Nu posted fourth-quarter revenue of $4.9 billion and net income hit $894.8 million. Customer count landed at 131 million spanning Brazil, Mexico, and Colombia. “As we enter 2026, we see this as an inflection year,” Chief Executive David Vélez said. The operating backdrop, for now, remains strong. Nu International
After the call, some questions still hung in the air. Bank of America’s Mario Pierry zeroed in on the jump in provision expenses, prompting CFO Guilherme Lago to clarify that the increased reserves were “entirely attributed to growth,” not any deterioration in credit quality. Lago also flagged potential pressure on the efficiency ratio over the next four to six quarters—a heads-up that costs could rise faster than revenue. Investing.com
Vélez looked to tamp down concerns over the U.S. expansion, emphasizing the focus would be on building out teams and developing products, with no major outlays expected in 2026. Nu, he said, isn’t planning to “shoot in all directions,” opting instead for a highly targeted strategy in the U.S. market. Investing.com
Broker sentiment is all over the place. Pierry dropped his target down a notch to $17 from $18, sticking with neutral. Morgan Stanley’s Jorge Kuri went the other way, hiking his target to $21 and pointing to discussions with management that, he says, strengthen Nu’s “long-term compounding story.” UBS is now taking a more cautious line, trimming its target last week to $17.20 from $18.40. StreetInsider.com
The risk is pretty clear. If expenses don’t come down, those tax benefits from the fourth quarter won’t show up again, and if non-performing loans—accounts over 90 days late—push higher than the seasonal uptick management is projecting for Q1, shares could stay under pressure. After results, Reuters flagged Citi analysts’ take: operating costs and risk stood out as the soft spots in what was otherwise a solid quarter.
Nu’s shares are stuck at $14.88, still trailing BofA’s trimmed price target. Investors barely moved on Wednesday, holding out for proof that Nubank’s push into new markets won’t undercut the rigor that’s kept the company profitable.
