BofA Downgrades Nu Holdings Ltd. (NU) on CFO Transition

Nu Holdings Ltd. (NYSE:NU) is one of top cheap stocks with Strong Buy ratings on Wall Street. BofA downgraded Nu Holdings Ltd. (NYSE:NU) to Underperform from Neutral on June 2, bringing the price target on the stock down to $10 from $16. The firm told investors in a research note that CFO Guilherme Lago’s departure adds to the company’s concerns, adding that it sees the news as a “negative surprise”. The firm believes that Lago was one of Nu Holdings Ltd.’s (NYSE:NU) most important executives, and thus, the timing of the CFO transition adds uncertainty. BofA contended that this holds especially true in a backdrop where the company is navigating a more challenging phase for credit in Brazil and pursuing expansion into Colombia, Mexico, and the United States.

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BofA previously cut the price target on Nu Holdings Ltd. (NYSE:NU) to $16 from $17 on May 21, maintaining a Neutral rating on the shares and stating that quarterly results disappointed for “a second consecutive quarter”.

Headquartered in George Town, Cayman Islands, Nu Holdings Ltd. (NYSE:NU) is a provider of digital banking services.

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