Morgan Stanley upgrades this fintech stock, sees almost 30% upside from here

Accelerating earnings growth should drive shares of Futu Holdings higher, according to Morgan Stanley. The investment bank upgraded the fintech stock to overweight from equal weight and raised its price target by $45 to $115. That reflects around 29% upside from Friday’s close. “It’s still early-stage, but the accelerating franchise expansion in Singapore this year gives us more confidence factoring bigger overseas growth potential into our model,” analyst Chiyao Huang said in a recent note to clients. Specifically, the analyst pointed to substantial client asset growth in the company’s third-quarter results, forecasting a year-over-year increase of 38%. In the same period, profit growth should also increase to 20%, Huang noted. In the near term, the analyst also cited accelerating client conversation in Japan over the next six months and anticipates that the country will contribute between 6% and 7% of client assets and revenue in 2026. “We believe Futu’s effort to improve client onboarding process while expanding product offerings and localized marketing campaigns should pay off gradually and drive client conversion,” Huang continued. Beyond that, Huang expects earnings to see year-over-year growth of 19% in both 2025 and 2026 overall. Wall Street is largely bullish on the brokerage company, with 16 of the 18 analysts covering it having a strong buy or buy rating, per LSEG data. FUTU YTD mountain FUTU, year-to-date Shares rose more than 2% in the premarket on Monday following the call. That would add to the massive rally seen this year, as the stock has gained around 63%.