Nu Holdings’ Strategic AI and Pricing Initiatives Drive Buy Rating

Morgan Stanley analyst Jorge Kuri has maintained their bullish stance on NU stock, giving a Buy rating on November 15.Meet Your ETF AI Analyst Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow. Jorge Kuri has given his Buy rating due to a combination of factors that highlight Nu Holdings’ strategic positioning and growth potential. The company’s focus on leveraging AI for smarter deposit pricing and risk modeling is expected to enhance its financial performance, particularly in Brazil and Mexico. This technological advancement is anticipated to improve the net interest margin (NIM) by offsetting credit yield pressures through a better cost of risk management.Additionally, Nu Holdings is optimizing its deposit strategy in Mexico, with a tailored approach that stabilizes outflows and increases client engagement, particularly among mass-market clients. In Brazil, strategic pricing initiatives are leading to higher net present value outcomes despite rising deposit costs. Furthermore, the Credit Limit Increase Policy (CLIP) is projected to yield attractive returns, with incremental credit limits expected to achieve high returns on equity. These strategic initiatives collectively reinforce Nu Holdings’ competitive advantages and long-term growth prospects, justifying the Buy rating. In another report released on November 15, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $17.50 price target.