$NU Looks Seriously Undercovered by Wall Street

For a company of its size, $Nu Holdings Ltd.(NU)$ still seems surprisingly undercovered by Wall Street.

With a market cap around $69B, NU has had relatively few analyst ratings compared with similarly sized U.S. banks. For example, $Truist Financial Corp(TFC)$ has a comparable market cap but significantly more analyst coverage.

What makes the gap even more interesting is the difference in growth.

NU is growing at a completely different pace. 🚀

I think part of the reason is that Wall Street still views NU through an outdated lens — essentially as a risky digital bank serving lower-income customers in Brazil.

But that story is changing.

NU is moving further into Brazil's middle- and higher-income segments, while continuing to expand across Mexico and Colombia. In Q2, the company reached 139 million customers globally, including nearly 118 million in Brazil, 15.8 million in Mexico and more than 5 million in Colombia.

The company has also received conditional approval to establish a national bank in the U.S., laying the groundwork for a potential expansion into the American market.

And the financial results are becoming harder to ignore: NU generated $1.06B in quarterly net income in Q2, its first quarter above the $1B mark.

So the interesting question isn't just whether NU is growing.

It's whether Wall Street is still underestimating how quickly the business is changing. 👀

If the U.S. expansion starts to become real and NU continues moving upmarket while scaling across Latin America, I think the narrative around this company could change pretty quickly.

Sometimes the opportunity is hiding in the gap between the business that's actually being built and the story Wall Street is still telling. 🎯

What do you guys think about $NU? 👇