What happened
Next-generation fintech and digital bank Nu Holdings (NU 1.66%) had a lousy Thursday on the stock market. Somewhat counter-intuitively, given the company's recent financial performance, an analyst lowered his price target on the stock. Investors took this to heart, trading the shares down by more than 8% on the day.
So what
That prognosticator was Jorge Kuri, who now feels Nu Holdings' stock is worth $10.75 per share; previously, his price target was $12.50. Yet Kuri is maintaining his bullish stance on the fintech and next-generation lender, as he kept his overweight (i.e., buy) recommendation intact.
Bullishness had been in the air for Nu Holdings this week. Late on Sunday, the company reported its third-quarter results, revealing solid growth that propelled its revenue to $1.3 billion for the period. The bottom line landed in the black, meanwhile, with a headline net income of just under $8 million.
Key operational metrics ticked up, too. The company said it added over 5 million customers during the quarter for a new total of 70.4 million throughout its native Brazil, plus Mexico and Colombia. Monthly average revenue per active consumer (ARPAC) -- a financial measure it considers important and indicative -- rose 61% on a year-over-year basis.
Now what
Kuri's new note wasn't particularly alarming; rather, it represented an adjustment to his take on Nu Holdings stock. All in all, investors might have taken it as a chance to book quick profits on the stock by selling it off after its nice run-up earlier in the week.
