- Jefferies maintains a “Buy” rating for Futu Holdings Limited but lowers its price target to $170.50 from $224.00.
- The online brokerage platform demonstrates robust user acquisition, with funded accounts increasing by 34.3% year-over-year to approximately 3.6 million, and total client assets growing by 47.2% to HK$1.22 trillion.
- Despite a 61% decrease in reported net income due to a one-time administrative penalty, underlying business performance remains strong, with net income (excluding penalty) showing a 36% increase, complemented by a $418.00 million share repurchase.
Futu Holdings Limited (NASDAQ:FUTU) is a technology company that provides an online brokerage platform. It allows users to trade stocks and other assets, primarily in markets like Hong Kong and the United States. The company operates in a competitive space with other online brokers, focusing on a user-friendly, tech-forward experience for its clients.
On May 28, 2026, the analyst firm Jefferies maintains its Buy rating for Futu Holdings Limited. A Buy rating suggests the analyst believes the stock will perform well. However, the firm lowers its price target, which is the price an analyst expects a stock to reach, to $170.50 from $224.00. At the time, Futu Holdings Limited’s stock price is $105.61.
The positive market outlook is supported by strong user growth. As highlighted by GlobeNewswire, Futu Holdings Limited’s total number of funded accounts increases by 34.3% year-over-year to about 3.6 million. Total client assets also see a substantial increase of 47.2%, reaching HK$1.22 trillion, showing that more customers are trusting the investment platform with more money.
The lowered price target may reflect concerns over profitability. According to its earnings call reported by MarketBeat, Futu Holdings Limited’s total revenue grows 25% to HKD 5.90 billion. However, its net income, or profit, decreases by 61% to HKD 831.00 million. This drop is due to a one-time administrative penalty from Chinese regulators, impacting its financial performance.
Excluding this penalty, Futu Holdings Limited’s net income would have increased by 36% to HKD 2.90 billion, showing strong underlying business performance. The company also shows confidence by repurchasing its own shares. As reported by GlobeNewswire, Futu Holdings Limited has bought back approximately $418.00 million of its shares under an $800.00 million share repurchase program, signaling strong investor confidence.
