Recently, CICC released a research report maintaining its Outperform rating for Futu Holdings, while lowering its target price to $90. CICC predicts that Futu Holdings' 2Q24 total revenue will increase 13% QoQ and 18% YoY to HKD 2.94 billion, mainly due to the growth in the number of paying clients and improved customer transaction volume.
Considering the impact of the expected interest rate cut, CICC lowered its profit forecast for 2024/2025 by 3%/6% to HKD 5.1 billion/HKD 5.8 billion. The target price was lowered by 8% to $90, corresponding to 19x/17x 2024/2025e P/E and a 49% upside potential. The Outperform rating was maintained.
Risk factors:
Poor market transaction and economic conditions
Industry competition exceeds expectations
International expansion falls short of expectations.