Goldman Sachs Sticks to Its Guns on Nu Holdings Despite Recent Pullback

Nu Holdings (NU) has seen its stock price drop sharply in recent months, but Goldman Sachs analysts remain bullish on the company's outlook.

The neobank's customer base continues to grow, with a total of 139 million global customers as of the second quarter. This includes nearly 118 million users in Brazil and over 5 million in Colombia.

Goldman Sachs notes that Nu Holdings' entry into the US market may be successful due to its low-cost approach combined with a strong customer experience. This could allow it to gain market share in the country.

The analysts also highlight the company's strong presence in Brazil, where it has a significant user base and is scaling rapidly. They argue that Nu Holdings should outperform peers with weaker unit economics or slower customer adds.

Despite the recent pullback, Goldman Sachs believes that the stock has further upside potential in the near term. The analysts maintain their bullish view on the company's outlook.