- Futu Holdings Limited is a leading fintech and brokerage company in China. The company offers a fully digitalized investing and wealth management platform.
- FUTU is the market leader for online brokerage services in China: a market with truly enormous growth potential, but also heightened regulatory risk exposure.
- If Futu is able to successfully manages the regulatory risk exposure, the stock could arguably go much higher and see a valuation similar to the valuation of Interactive Brokers.
- However, a regulatory tightening for the online brokerage industry in China could break Futu's business to such an extent that it is hard to define a bottom for the stock.
- Weighting the risk/reward, I assign a speculative buy rating with a pro-forma target of $41.60/share.
For further details see:
If You Like Speculation, Buy Futu