On Monday, CLSA has raised its rating on shares of Futu Holdings Limited (NASDAQ:FUTU), moving from an Underperform to an Outperform status, and has increased the price target to $65.00, up from the previous $50.00. This adjustment follows a period where Futu's stock experienced a 16% decline after the company reported its 2023 net profit results. The results came in 3% below the consensus but aligned with CLSA's projections.
The analyst at CLSA noted that while a further correction in the stock price might occur in the near term, the firm maintains a positive outlook on Futu's growth potential over the medium to long term. Key factors contributing to this optimistic view include significant client asset inflows and a reduction in customer acquisition costs (CAC) in the fourth quarter of 2023.
Moreover, Futu Holdings has provided guidance indicating a strong 19% growth in the number of paying clients for the year 2024. The analyst emphasized that the company's ongoing efforts to expand internationally remain a crucial element driving its growth.
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