Futu Holdings Stock (NASDAQ:FUTU) Gains A New Bull

Futu Holdings (NASDAQ:FUTU), the digital brokerage and wealth management platform, is attracting renewed market attention after Daiwa Securities initiated coverage with a “Buy” rating and a $190 price target.

This bullish outlook arrives on the heels of a remarkable year for Futu, with its stock price having already doubled since January.

The Daiwa initiation provides further validation for Futu's growth trajectory, joining a chorus of positive analyst sentiment. Bank of America recently raised its price objective to $143.90, maintaining a “Buy” rating, while Barclays initiated coverage with an “Overweight” rating and a $176.00 price target. These revisions reflect confidence in Futu's ability to capitalize on the growing demand for digital investment services.

Futu's recent stock performance underscores this optimism. On July 18th, shares surged by 12.3%, closing at $160.57. Just days later, on July 23rd, the stock reached a 52-week high of $174.36, showcasing strong market appetite.

While the stock has experienced some consolidation in recent weeks, the overall trend remains firmly upward. The stock's 52-week range of $56.22 to $174.36 highlights the impressive gains made over the past year. The current price is trading well above longer-term moving averages, confirming the multi-month uptrend.

A key driver of Futu's success is its Moomoo platform, a comprehensive trading platform offering access to U.S., Chinese, and Hong Kong stocks, ETFs, and options. The platform's integrated social community fosters user engagement, allowing users to share insights and discuss market trends. This social element differentiates Moomoo from traditional brokerage platforms and contributes to its growing popularity.

While Futu faces regulatory headwinds, particularly the China Securities Regulatory Commission's (CSRC) order to cease accepting new customers from mainland China in late 2022, the company has demonstrated resilience.

Despite these restrictions, Futu continues to serve existing clients and actively expand its services internationally. This strategic focus on global expansion mitigates the impact of domestic regulatory challenges.

The company is scheduled to release its next earnings report on August 19. The markets will be closely watching the results for continued growth in user acquisition, trading volume, and revenue. These metrics will provide valuable insights into the company's ability to navigate the regulatory landscape and maintain its growth momentum.

Futu's performance over the past year has been exceptional, with a 175% increase, significantly outperforming the SPY's 21.3% gain. The stock has also delivered strong 3-month performance, up 52.5% compared to the SPY's 13.0% increase.

Futu's next earnings date on August 19th should give markets a clearer picture of the company's financial position, and ability to continue its growth.