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Morgan Stanley remained Equal-weight on FUTU with TP of US$53.00

Moomoo News ·  Aug 31, 2022 08:24

On August 30, Morgan Stanley released a research report and gave $Futu Holdings Ltd (FUTU.US)$an Equal-weight rating with a US$53 price target.

Morgan Stanley pointed out in the research report:

  • Paying clients added reached ~61k in 2Q22, moderating from 81k in 1Q22 but still higher than Morgan Stanley's expectation.

  • Clients with wealth management positions increased 17.5% qoq, making up 14.6% of total paying clients, up from 13% in 1Q22.

  • Net profit increased 20% yoy, 12% qoq helped by improving gross margin to 88% and yoy lower marketing expense due to a more focused client acquisition strategy.

Morgan Stanley rated FUTU Equal-weight with target price of US$53.00.

Risk factors:

1) Major correction in US/HK markets; 

2) More regulations; 

3) Faster-than-expected expansion of virtual banks in HK brokerage business.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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