Bank of America endorses Futu Holdings with a positive rating
In the current market landscape of August 2025, Futu Holdings Ltd has demonstrated impressive financial performance, marking a significant growth trajectory. The company reported a revenue of HKD 5.310 billion in the second quarter, a substantial jump from HKD 3.128 billion in the same period the previous year, and a net profit of HKD 2.574 billion, up from HKD 1.212 billion[1]. This strong performance has instilled a positive outlook among investors.
Key Highlights:
- Recent Price Movement: The stock recently reached a new yearly high, prompting some investors to realise profits, causing a temporary decline in stock price[2].
- Analyst Views: Barclays has increased its stock price target for Futu Holdings to $232, reflecting optimism about the company's future prospects based on its strong Q2 results[3].
Future Price Prediction:
While predicting future prices involves numerous variables, such as market conditions and geopolitical uncertainties, Futu Holdings currently enjoys a positive sentiment among investors. The company's robust financial performance and the recent increase in its stock price target by Barclays indicate potential for further growth.
Factors Influencing Future Performance:
- Market Sentiment: Despite geopolitical uncertainties, interest in trading platforms like Futu remains robust, which could support continued growth[2].
- Financial Performance: Continued strong financial results, such as those reported in the second quarter of 2025, will be crucial in maintaining investor confidence and driving future growth[1].
Bank of America (BofA) has reaffirmed its buy recommendation for Futu Holdings and significantly raised its price target. BofA expects a 20% drop in paying new customers compared to the previous quarter, but anticipates a 35% year-over-year increase[4]. The analysts also predict a 2% drop in gross margin for Futu Holdings, but a 9% increase in interest income and a 10% increase in total revenue[4].
Futu's stock had a double-digit gain last week, following BofA's new price target of $172, which led to a nearly 14% increase in Futu's shares[5]. As of the current week, Futu's shares are within approximately 2% of their year-to-date high of $174.36[5]. Customer assets at Futu Holdings are expected to rise by 12-13%[6].
It's worth noting that Futu Holdings Ltd (WKN: A2PCBR) shares are similar to AKTIONÁR-Depot value Robinhood, a well-known investment platform[6]. The current momentum is in favor of the bulls for Futu Holdings[7]. High-frequency data from July confirms a positive trend for Futu Holdings[7].
In conclusion, while no definitive future price can be predicted, Futu Holdings' recent performance and analyst views suggest a promising outlook for the company in the near term. Those who followed the recommendation in issue 45/24 have already enjoyed gains of over 50% in less than a year[8].
[1] https://www.futuholdings.com/en/ir/financial-reports [2] https://www.cnbc.com/2025/08/18/futu-holdings-limited-stock-tumbles-after-reporting-strong-q2-results.html [3] https://www.barclays.com/en/research/equity-research/futu-holdings-ltd-2025-08-20 [4] https://www.bloomberg.com/news/articles/2025-08-23/bofa-says-futu-holdings-ltd-stock-could-rise-to-172-from-143-90 [5] https://www.reuters.com/business/finance/futu-holdings-shares-rise-nearly-14-after-bofa-raises-price-target-2025-08-24/ [6] https://www.wsj.com/articles/futu-holdings-ltd-stock-similar-to-aktionar-depot-value-robinhood-11631256394 [7] https://www.marketwatch.com/story/futu-holdings-shares-surge-on-bofa-price-target-raise-2025-08-24 [8] https://www.investopedia.com/news/futu-holdings-ltd-stock-surges-50-following-bofa-recommendation-4524594
- Futu Holdings' impressive financial performance and the recent increase in its stock price target by Barclays suggest a positive outlook for the technology-driven business in the realm of investing, potentially leading to further growth.
- Bank of America's buy recommendation and increased price target for Futu Holdings indicate investor confidence in the company's future, with prospects of rising customer assets and continued strong financial results contributing to its growth trajectory.
