What Happened?

Shares of digital banking platform Nubank (NYSE: NU) jumped 3.7% in the afternoon session after receiving a rare double upgrade from Citi, which significantly boosted its rating on the stock. The firm issued a rare double upgrade, shifting its rating on the stock from “Sell” all the way to “Buy” and doubling its price target to $18 from $9. This dramatic shift in perspective follows Nu Holdings' strong second-quarter performance, which showed robust profit and revenue growth. Citi cited the potential for an earnings boost as a key reason for the change.

After the initial pop the shares cooled down to $13.65, up 3.9% from previous close.

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What Is The Market Telling Us

Nubank’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Nubank is up 28.4% since the beginning of the year, but at $13.65 per share, it is still trading 14.1% below its 52-week high of $15.89 from November 2024. Investors who bought $1,000 worth of Nubank’s shares at the IPO in December 2021 would now be looking at an investment worth $1,321.

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