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BOCI reiterated Buy rating on FUTU with new TP of $181

Moomoo News ·  Mar 18, 2021 19:58  · Ratings

By Melody

On March 17, BOCI reiterated its buy rating on $Futu Holdings Limited(FUTU.US)$, boosting its target price to $181.0 from $111.6.

Source: BOCI

BOCI is rather positive about the online brokerage industry with an Overweight rating on the sector while maintains a Buy rating on FUTU.

Futu is reiterated as Buy given:

  • The paying client base expansion beats the management guidance and our expectation.

  • The effective take rate remained largely stable, while we expect short-term volatility in FY21E.

  • The cost-to-income ratio fell to a historical low level, indicating Futu's strong cost control abilities.

"We believe that Futu deserves a valuation premium because of the better outlook of its revenue and net profit growth, driven by the better penetration of online brokerage services in retail investors and Futu's overseas business expansion."

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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