Nu Holdings price target raised to $16, named a Top Pick at Morgan Stanley

Morgan Stanley raised the firm’s price target on Nu Holdings to $16 from $11 and keeps an Overweight rating on the shares, which are now the analyst’s Latam financials Top Pick. The market is “significantly underestimating” Nubank’s ability to deliver growth and profitability, as increasing product penetration in Brazil and success in Mexico and Colombia are “not priced in,” the analyst tells investors. The firm believes Nubank could reach $100B in valuation by 2026, the analyst added.