Citi analyst Gustavo Schroden downgraded Nu Holdings (NU) to Sell from Neutral with a price target of $11, down from $14.60. The company has shown an “impressive capacity” to expand its operations in Brazil rapidly, while maintaining even faster net income growth, the analyst tells investors in a research note. However, Citi sees the stock’s strong year-to-date performance as a good opportunity to take profits. Nu’s alternative revenue sources, like payroll loans in Brazil, Mexico and Colombia, could take longer than expected to offset the slowdown in credit cards and personal loans in Brazil, contends Citi.
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