By Brazil Stock Guide – Aug. 19, 2025 – BTG Pactual upgraded Nubank (NU) to a “buy” rating for the first time since the Brazilian digital lender’s 2021 IPO, raising its price target to $18 from $14. The move, reported by Valor Econômico, reflects growing confidence in the fintech’s credit operations and international expansion.
“We had been flirting with this upgrade for a few months,” analysts Eduardo Rosman and team wrote in a note to clients dated Monday. They highlighted several steps that anticipated the shift, including adjustments to their digital banking sector calls earlier this year.
In March, BTG closed its long recommendation on Inter&Co (INTR) versus short Nubank following NU’s selloff after fourth-quarter results. By April, when NU’s stock slipped to $10 from $16 in late 2024, the analysts added the shares to their recommended portfolios, where they have remained since.
The team pointed to Nubank’s stronger-than-expected first-quarter results in May, a view that has since become closer to market consensus. They also cited accelerating credit card transaction volume (TPV) in Brazil, stronger traction in Mexico, and upside from public and private payroll-deducted loans as catalysts for future gains.
Despite the upgrade, shares of Nubank were trading 0.41% lower at $13.28 in New York around 12:35 p.m. Brasília time.
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