Futu Holdings Limited (FUTU) Upgraded by Jefferies: A Comprehensive Analysis

• Jefferies upgraded Futu Holdings Limited (NASDAQ:FUTU) to a "Buy" rating, highlighting its impressive financial performance in Q3 2024.
• Futu reported a 29.6% increase in total revenues and a 20.8% rise in non-GAAP adjusted net income, indicating strong financial health and operational efficiency.
• The company's global user base and total client assets have seen significant growth, with a 48.1% increase in total client assets year-over-year.

On November 19, 2024, Jefferies upgraded Futu Holdings Limited (NASDAQ:FUTU) to a "Buy" rating, with the stock priced at $58.24 at the time. Futu Holdings, the parent company of Moomoo, is a tech-driven online brokerage and wealth management platform. It competes with other online brokerages like Robinhood and E*TRADE.

Futu's financial performance in the third quarter of 2024 has been impressive. The company reported total revenues of $442.3 million, a 29.6% increase from the previous year. This growth is supported by a 20.8% rise in non-GAAP adjusted net income, reaching $180 million. These figures highlight Futu's strong financial health and operational efficiency. The company's global user base has expanded significantly, surpassing 24.1 million, with paying clients nearing 2.2 million. This represents year-over-year increases of 14.4% and 33.1%, respectively. Such growth indicates Futu's successful strategy in attracting and retaining clients in a competitive market.

Futu's total client assets have also seen substantial growth, reaching $89.2 billion, a 48.1% increase year-over-year. The company has experienced strong growth in newly penetrated markets like Japan, Canada, and Malaysia, with double-digit increases in account openings and client assets. This expansion underscores Futu's effective global market penetration. Despite the positive financial results, FUTU's stock is currently priced at $86.70, experiencing a 6.07% decrease. The stock has fluctuated between $86.58 and $91.87 during the day, with a market capitalization of approximately $4.06 billion. This volatility reflects the dynamic nature of the stock market and investor sentiment.