đ Exclusive Update: Citi Reduces Price Target for UP Fintech Holding Ltd. (NASDAQ: TIGR) to $5.00 - What Does This Mean for Investors? đđ°
On Tuesday, Citi revised its assessment of UP Fintech Holding Ltd. (NASDAQ: TIGR) shares, lowering the price target to $5.00 from $6.49 while maintaining a Buy rating. This adjustment comes after the company reported a significant decline in non-GAAP net profit for the second quarter of 2024.
The drop in net profit was primarily due to a one-time provision of $13.2 million related to a legacy stock pledge business in Hong Kong, which was discontinued in 2023. Despite this setback, UP Fintech's operating profit showed strong growth, driven by solid trading volume and the expansion of its Mutual Fund Service License (MFSL).
Additionally, UP Fintech reported a substantial increase in new paying customers, adding 48.9 thousand in the second quarter alone. Looking ahead, the company's management expects further strength in trading volumes and revenue momentum in the third quarter of 2024.
The revised price target from Citi is based on a discounted cash flow (DCF) model, factoring in the latest earnings revision. While Citi continues to recommend a Buy position on the stock, it comes with a High Risk rating.
In other news, UP Fintech Holding Limited achieved record-breaking results in the second quarter of 2024, with significant growth in revenue, newly funded accounts, and client assets. Despite facing challenges with a loss provision related to Hong Kong stock pledging, the company remains optimistic about its future prospects.
InvestingPro Insights:
Analysts have a positive outlook on UP Fintech's profitability, predicting that the company will be profitable this year. Although UP Fintech does not distribute dividends, its impressive revenue growth and financial metrics suggest a strong position for potential growth.
Key Financial Metrics:
- Market Capitalization: $572.63 million
- Price to Earnings (P/E) ratio: 22.47 (21.49 adjusted for last twelve months as of Q2 2024)
- Revenue growth: 12.96% over the last twelve months, 32.76% quarterly surge as of Q2 2024
For more in-depth analysis and InvestingPro Tips on UP Fintech, visit Investing.com/pro/TIGR. Explore a comprehensive suite of tools and data to gain a deeper understanding of potential investment opportunities with UP Fintech. đđŧ
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