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    How Nu Holdings’ Push for a Brazilian Bank License and U.S. Expansion (NU) Has Changed Its Investment Story

    Simply Wall St·12/14/2025 04:34:16
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    • Nu Holdings’ Nubank recently explored acquiring a small, already-licensed bank in Brazil while continuing to roll out new products and expand across key Latin American markets and into the U.S.
    • This combination of potential bank acquisition and wider geographic push highlights how Nu is trying to deepen monetization of its large, existing customer base.
    • We’ll now examine how Nu’s pursuit of a Brazilian bank license via acquisition could influence its investment narrative and long-term growth assumptions.

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    Nu Holdings Investment Narrative Recap

    To own Nu Holdings, you need to believe that its digital-first model can keep scaling across Latin America and beyond while managing credit and regulatory risks. The reported hunt for a licensed Brazilian bank looks additive, but it does not materially change the near term focus on sustaining profitable growth while keeping bad loans, already elevated at 8.1 percent, under control in a higher regulatory spotlight.

    The most relevant recent development here is Nu’s application for a U.S. national bank charter, paired with its pending full bank authorization in Mexico. Together with a possible Brazilian bank acquisition, these moves could accelerate product breadth and deposit gathering, but they also increase oversight and complexity at a time when the stock already trades at a premium earnings multiple relative to traditional banks.

    Yet behind the rapid expansion and strong recent profitability, investors still need to be aware of how quickly tighter regulation or rising credit losses could…

    Read the full narrative on Nu Holdings (it's free!)

    Nu Holdings' narrative projects $33.0 billion revenue and $6.1 billion earnings by 2028. This requires 78.1% yearly revenue growth and a $3.8 billion earnings increase from $2.3 billion today.

    Uncover how Nu Holdings' forecasts yield a $18.43 fair value, a 9% upside to its current price.

    Exploring Other Perspectives

    NU 1-Year Stock Price Chart
    NU 1-Year Stock Price Chart

    Simply Wall St Community members have 26 fair value estimates for Nu, ranging from about US$10.44 to US$20.76 per share, underscoring how far opinions can differ. Against that backdrop, Nu’s push to secure bank licenses across Brazil, Mexico and the U.S. could be a powerful earnings catalyst, but it also raises the stakes on regulatory and credit execution that readers may want to compare across several viewpoints.

    Explore 26 other fair value estimates on Nu Holdings - why the stock might be worth 38% less than the current price!

    Build Your Own Nu Holdings Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.