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TLDR:
In a recent update, Citi lowered UP Fintech’s stock target price to $6.22 from $8.01 but maintained a Buy rating. The company’s fourth-quarter report showed a significant decline in non-GAAP net profit, attributed to lower trading volume and a one-time foreign exchange loss. Despite setbacks, UP Fintech added new paying customers and aims to acquire more in 2024.
Main Article:
Citi has revised its stance on UP Fintech Holding Ltd. (NASDAQ: TIGR) by adjusting the stock price target to $6.22, down from $8.01, while keeping a Buy rating. The decision follows UP Fintech’s fourth-quarter report, which revealed a substantial decline in non-GAAP net profit compared to previous quarters and the previous year.
The main factors contributing to the dip in earnings were a decrease in trading volume and a one-time foreign exchange loss of $7 million, stemming from the depreciation of the U.S. dollar at the end of 2023. Operating profit, excluding share-based compensation, also saw significant declines due to increased operational expenses in the fourth quarter.
Despite these challenges, UP Fintech reported positive developments, including adding new paying customers and surpassing the management’s guidance for total customers in 2023. Looking forward, the company aims to acquire 150 thousand new paying customers in 2024, representing a 50% increase from the previous year.
Citi’s decision to adjust the discounted cash flow-derived price target reflects the company’s revised earnings outlook. Despite the setbacks, Citi continues to endorse a Buy/High Risk rating for UP Fintech Holding Ltd., emphasizing its positive growth prospects in the future.
