Futu Holdings, a Hong Kong-based online brokerage and wealth management firm, is rising Wednesday with help from an analysts' price target hike. Futu stock reached a handle buy point Wednesday after volatile action since the company's latest earnings report in late May.
On Wednesday, BofA Securities raised its price target to 143.90 from 123.70, and maintained its buy rating on Futu stock. The IBD 50 Growth Stocks To Watch name is currently trading around 115.
Futu Holdings operates trading platforms moomoo and Futubull. It provides investing services including trade execution and clearing, margin financing and wealth management. It serves clients in Hong Kong, Singapore, the U.S., Australia, Japan, Canada and Malaysia.
The IBD 50 and MarketSurge Growth 250 name ranks No. 1 out of 37 stocks in the Finance-Investment Bankers/Brokers group. The group rose to the 21st spot from the 42nd spot four weeks ago, out of the 197 industry groups that Investor's Business Daily tracks.
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Futu Stock Breaks Out Of Base
Futu stock powered up more than 8% in heavier-than-average volume and broke out of an early-stage cup-with-handle base with a 114.98 buy point. Shares are in the buy zone up to 120.73, according to MarketSurge pattern recognition.
Shares spiked and reached the entry point on May 29, after the financial company reported its first-quarter earnings results. However, the stock closed below the entry and finished 0.3% lower for the day.
Its 50-day moving average is flattening out after sliding from a peak in early April. And its relative strength line is in a jagged sideways trend. Shares have climbed around 46% so far this year.
Brokerage Name Sees Continued Growth
Futu topped first-quarter earnings and sales estimates with revenue increasing 81%.
lts number of funded accounts rose 41.6% over the prior year to 2,673,119 as of March 31, with Malaysia showing robust growth. Even more impressive was its first-quarter boost of 140.1% in total trading volume.
"In Hong Kong, we unveiled Futubull AI, our proprietarily trained, AI-powered investment assistance, and revealed a new desktop version with more intuitive tools and advanced features," Futu's Chief Executive Leaf Hua Li said in the earnings release.
Futu's earnings line shown in green on the weekly chart turned upward after Futu's latest two earnings reports. It has a 3-year earnings growth rate of 41% according to IBD Stock Checkup.
Full-year 2025 profit projections have recently been revised up to 40% growth then 16% in 2026. Sales for its second quarter are expected to rise 35% followed by 18% growth.
Lastly, Futu stock boasts a best-possible 99 IBD Composite and Earnings Per Share Ratings.
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