Futu Holdings Intrinsic Stock Value – Morgan Stanley Upgrades FUTU Holdings to Equal-Weight, Identifies Balanced Risk-Reward Profile
January 5, 2024
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Morgan Stanley has upgraded their rating of FUTU ($NASDAQ:FUTU) Holdings to Equal-Weight, citing an improved balance of risk and reward. FUTU Holdings is a global financial technology company that specializes in providing online brokerage services, investment advisory services and other financial services to global clients. The company has been rapidly expanding their presence both in the United States and abroad, as they have become one of the leading players in the online brokerage market. Morgan Stanley believes that the new Equal-Weight rating reflects the improved balance between risk and reward for FUTU Holdings. The company has been increasing its revenue and earnings, while still maintaining a relatively conservative stance in terms of risk management.
Additionally, they have been increasing their market share in the online brokerage market, as well as expanding their presence in new markets. Moreover, Morgan Stanley believes that FUTU Holdings is well-positioned to capitalize on the growing demand for online brokerage services. The company has been investing heavily in technology infrastructure, which will enable them to offer more efficient and comprehensive services to their customers. Additionally, they have been focusing on expanding their customer base, as well as providing more custom tailored services to their existing customers. With its strong financials and efficient management, the company is well-suited to benefit from the current market conditions and continue to grow its market share.
Price History
The stock opened at $52.2 and closed at $52.4, showing a modest gain of 0.4% from its prior closing price. This small uptick follows a positive series of recommendations from other investment houses earlier in the week. Investors have been fairly positive on FUTU Holdings‘ outlook due to the company’s diversified product portfolio, strong fundamentals, and superior technological capabilities. The company is well positioned to capitalize on the increasing demand for innovative services and products that can improve user experience and efficiency in various industries. Analysts have also noted that the company has a significant presence in the Asia Pacific region, which could serve as a major source of growth for the company in the future.
Overall, FUTU Holdings has been one of the most promising stocks in recent times, and Morgan Stanley’s upgrade is yet another sign of how far it has come. The company’s financials are solid, and the longer-term growth prospects remain strong. With the right investments and initiatives, FUTU Holdings is well positioned to capitalize on the current market opportunities and generate solid returns for its investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Futu Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 9.92k | 4.36k | 44.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Futu Holdings. More…
| Operations | Investing | Financing |
| 3.47k | 93.86 | -7.01k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Futu Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 96.64k | 73.11k | 168.51 |
Key Ratios Snapshot
Some of the financial key ratios for Futu Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 59.7% | 76.4% | 51.5% |
| FCF Margin | ROE | ROA |
| 34.1% | 13.9% | 3.3% |
Analysis – Futu Holdings Intrinsic Stock Value
GoodWhale has conducted an analysis of FUTU HOLDINGS‘s financials and has determined the fair value of a share of FUTU HOLDINGS to be around $97.8. This value was arrived at using our proprietary Valuation Line. At the current trading price of $52.4, this represents an undervaluation of 46.4%. This offers investors an opportunity to invest in a company whose price is lower than its true value. More…
Peers
The competition between Futu Holdings Ltd and its competitors, Excalibur Global Financial Holdings Ltd, TOP Financial Group Ltd, and Interactive Brokers Group Inc, is fierce. As these companies strive to provide the best services and products to their customers, they must constantly be looking for new ways to stay ahead of the competition. Each company brings unique strengths and weaknesses to the table, making the competition even more dynamic.
– Excalibur Global Financial Holdings Ltd ($SEHK:08350)
Excalibur Global Financial Holdings Ltd is a financial services company with a market capitalization of 120M as of 2022. The company provides a range of services, including asset management, investment banking, and wealth management. Despite the company’s impressive portfolio of services, its Return on Equity (ROE) has been negative, registering -166.06%. This suggests that the company has not been able to generate sufficient profits to cover its investments. The company’s negative ROE may be caused by a number of factors, including a lack of liquidity or an overly aggressive investment strategy. Moving forward, Excalibur Global Financial Holdings Ltd will need to focus on increasing its profitability if it is to remain competitive in a highly competitive market.
– TOP Financial Group Ltd ($NASDAQ:TOP)
Top Financial Group Ltd is a publicly listed financial services provider based in Hong Kong. Founded in 1972, the company provides a range of services including retail banking, wealth management, corporate finance, online banking and securities trading to their customers. As of 2022, the company has a market capitalization of 164.38M and a return on equity (ROE) of 25.13%. The company’s market cap indicates its current share price multiplied by the total number of outstanding shares and provides a measure of the size of the company. The high ROE indicates that Top Financial Group is utilizing its resources efficiently and effectively to generate income. This is a strong indicator of the company’s financial health and performance in the market.
– Interactive Brokers Group Inc ($NASDAQ:IBKR)
Interactive Brokers Group Inc is a global electronic trading and financial services company. Founded in 1977, the company’s brokerage operations are supported by a network of 19 international subsidiaries and offer customers direct access to stocks, options, futures, forex, bonds, and funds worldwide from a single IBKR integrated account. As of 2022, the company has a market capitalization of 7.15 billion and a Return on Equity of 44.51%. This impressive market cap and high ROE reflect the company’s commitment to delivering superior value to its customers. Interactive Brokers Group Inc is a global leader in the electronic trading of securities and commodities, providing innovative technology and services to both retail and institutional investors.
Summary
Futu Holdings is a digital brokerage platform that provides investors with access to the global capital markets. Analysts at Morgan Stanley recently conducted an investing analysis of Futu and concluded that the risk-reward balance for the stock was highly favorable. This conclusion resulted in Morgan Stanley upgrading their rating of Futu’s stock to equal weight, suggesting that investors should consider buying the stock for adequate risk-adjusted returns. Futu is renowned for its user-friendly digital platform, as well as its wide range of products and services. This includes margin trading, comprehensive market data, a range of trading tools, and a variety of research materials.
Moreover, Futu has a diversified and growing customer base. The company has also made several strategic acquisitions and investments, which have further enhanced its presence and capabilities. As such, Futu is well positioned to capitalize on the growth of the global capital markets in the coming years.
