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DBS initiates coverage on FUTU with BUY rating, TP of $55.

moomoo News ·  Nov 7, 2022 06:28  · Ratings

On October 24, DBS initiated coverage on $Futu Holdings Ltd (FUTU.US)$ with BUY rating and a target price of US$55.

DBS pointed out the following highlights on FUTU:

  • Well positioned to capture structural global wealth boom and the rise of retail traders despite near-term market volatility.

  • Best-in-class trading app is strong moat driving consistent market share gain from traditional players.

  • Highly profitable business at around 40% NPM with further room to grow upon maturity of overseas operations.

  • Initiate our coverage with BUY rating and target price of US$55, implying 0.7x FY23F PEG or 17x FY23F PE.

Key risks:

  • Global economy slowdown

  • Market liquidity contraction

  • Regulatory risk

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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