Assessing Futu Holdings (NasdaqGM:FUTU) Valuation After Zacks Upgrade and Brighter Earnings Outlook

Futu Holdings (NasdaqGM:FUTU) just caught investors attention after Zacks upgraded it to a #1 Strong Buy, supported by an approximately 8% increase in full-year earnings estimates over the past quarter.

See our latest analysis for Futu Holdings.

The Zacks upgrade comes after a powerful run, with the share price at around $170.87 and a year-to-date share price return above 100 percent, while the three-year total shareholder return above 150 percent signals strong, still resilient momentum.

If Futu’s surge has you rethinking where growth and sentiment might be headed next, it could be worth exploring fast growing stocks with high insider ownership as another source of fast moving opportunities.

With earnings estimates rising and the share price already more than doubling this year, investors now face a key question: is Futu still trading below its true value, or is the market already pricing in future growth?

Most Popular Narrative Narrative: 24.3% Undervalued

Compared to Futu Holdings last close at $170.87, the most popular narrative sees materially higher long term value, anchored in sustained growth and profitability.

The analysts have a consensus price target of $204.765 for Futu Holdings based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $269.29, and the most bearish reporting a price target of just $133.69.

Read the complete narrative.

Curious how a mature, profitable broker still commands upside in this narrative? The engine is compounding revenues and persistently high margins. Want to see the specific growth path and earnings multiple that underpin that fair value call? Dive in to review the full set of projections and assess whether they appear reasonable.

Result: Fair Value of $225.69 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, intense competition and shifting regulatory requirements could cap Futu’s market share gains and compress margins, which may challenge today’s bullish long term assumptions.

Find out about the key risks to this Futu Holdings narrative.

Build Your Own Futu Holdings Narrative

If you are not fully convinced by this outlook or would rather rely on your own analysis, you can build a custom view in just a few minutes, Do it your way.

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Futu Holdings.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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