On September 4st, Daiwa released a research report stating that it reiterates Futu as its top pick among China FinTech and raises the target price from $75 to $82.
Daiwa pointed out the following highlights on FUTU:
Daiwa believes the major regulatory overhaul has been completed after 2 rounds of major regulatory reforms.
Daiwa believes the competitive landscape is turning more favorable for Futu. The current environment has seen competition revert to products, innovation, and operations, which plays into Futu’s strength.
Daiwa reaffirmed Buy and raised the 12-month target price to USD82 (from USD75) on a target PER of 17x based on 1-year forward EPS. It also raised the expected EPS for 2023-25 by 5-11%, given Futu’s resilient interest income and wealth management income, and lower CAC.
Risk: major shareholder offloading its stake.