New York, May 21, 2026, 06:03 EDT
- Nu Holdings was last seen near $12.79, steady with Wednesday’s close and a 4.1% move up. Shares are off 23.6% for 2026.
- UBS lowered its price target on Nu to $16.90 from $18.10 on Wednesday but left its Buy rating in place.
- Investors are looking at fast gains in customers and loans, but also higher provisions—money set aside for potential loan losses.
Nu Holdings Ltd. shares traded close to Wednesday’s bounce in early New York moves Thursday, after UBS cut its price target but stayed positive on the Nubank parent.
Nu is looking to stabilize its credit story with investors, after posting record revenue and profit in the first quarter but also raising loss reserves. The NYSE cash session had not opened yet; regular trading runs between 9:30 a.m. and 4:00 p.m. ET.
The stock ended Wednesday at $12.79, gaining 4.07%, according to MarketScreener. That move kept shares near unchanged for the week. Shares are still off 23.6% for the year, suggesting doubts about lending quality and valuation remain.
UBS took a mixed approach May 20, lowering its price target to $16.90 from $18.10 but leaving its Buy rating in place. According to Benzinga’s analyst tracker, the updated target showed roughly 32% upside from the stock’s then-current price. UBS was the latest analyst to update its view on the stock.
Nu reported last week that first-quarter revenue beat $5 billion for the first time, net income hit $871 million and return on equity was 29%. Founder and CEO David Vélez said Nubank counted “more than 135 million customers” in the quarter. Vélez called artificial intelligence the company’s core priority, saying Nubank was “not adding AI to banking” but “rebuilding banking around AI.” Nu International
Credit remains the key area. TIKR pointed to Nu’s call, noting the loan book hit $37.2 billion at the end of the quarter, up 40% from a year ago when adjusted for currency swings. The credit-loss allowance rose, which pulled risk-adjusted net interest margin down by 100 basis points from the previous quarter to 9.5%.
Chief Financial Officer Guilherme Lago pushed back on suggestions the reserve build means a tougher credit cycle. “The provisions that we have been doing over the past quarters, they do not reflect any directional outlook that we have on the credit cycle,” Lago told analysts on the earnings call. He said Nu’s loan underwriting assumes “the future will be worse than the past.” MarketScreener
JPMorgan’s Yuri Fernandes put it plainly on the call: “first quarter is usually seasonal, higher provisions.” Lago backed that up, adding risk-adjusted margins should head back to late-2025 levels as seasonality passes. MarketScreener
Nu says the race is heating up. Brazil now has more than 115 million Nu customers, making Nu the country’s biggest private financial institution. In Mexico, Nu crossed 15 million customers and hit break-even. That brings the digital bank closer to major banks like Itaú Unibanco and Banco Bradesco, which also posted results this month.
The trade could still turn. Early-stage delinquencies are up, and if provisions remain high after the usual first-quarter jump, the rally in Nu shares could pause. Investor wariness about Nu’s U.S. expansion lingers, with Lago noting that asset quality and international moves are still the main areas of questioning. Some remain skeptical about the U.S. effort.
Thursday’s trade will test if buyers think the UBS target cut is already in the price or if they take it as a new reason to sell into the post-earnings move. The data supports both views.
Related articles: NYSE:NU
