U.S.-listed shares of Futu fall after JPM downgrades to 'neutral'

Futu Holdings

15/03/2024 14:01

** U.S-listed shares of Chinese brokerage platform Futu
Holdings  FUTU.O  fall as much as 2%, last down 1.2% at $55.71
    ** J.P. Morgan downgrades FUTU to "neutral" from
"overweight"; cuts PT to $62 from $64, a 9.9% upside to the last
close
    ** Brokerage says FUTU's interest income growth has peaked
and would likely drag its revenue growth in 2024 on the back of
Fed rate cuts
    ** Adds that it would take time for FUTU to monetize new
markets and products
    ** Rising head count and other infrastructure costs for new
markets may partly offset the gains from declining client
acquisition costs - brokerage
    ** Sixteen of 20 brokerages rate the stock "buy" or higher,
three "hold" and one "sell"; their median PT is $70 - LSEG data
    ** As of last close, stock up 3.2% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))