On Wednesday, UP Fintech Holding Ltd. (NASDAQ: TIGR), also known as Tiger Broker, received a revised price target from Citi, reflecting a positive outlook on the company's financial performance. The new price target has been set at $6.49, up from the previous $6.22, while the firm continues to endorse a Buy rating on the stock.
The adjustment comes after UP Fintech reported a robust first-quarter non-GAAP net profit of $14.7 million, marking a significant increase both quarterly and year-over-year. This performance exceeded expectations, largely driven by vibrant trading volumes amid bullish market sentiment and a favorable shift in foreign exchange gains.
The company's operating profit, excluding share-based compensation, saw a strong recovery, surging to $15.8 million. This was attributed to a seasonal decrease in operating expenses compared to the high levels experienced in the prior quarter. Despite a drop in new paying customers in the first quarter, management remains confident in achieving its full-year guidance, citing an uptick in customer acquisition momentum during April and May.
The raised price target is based on a discounted cash flow (DCF) model, which has been updated following the latest earnings revision.
UP Fintech's management team has reasserted its commitment to meeting the annual target of 150,000 new paying customers, having already secured over 35,000 in the last two months. This reassurance supports the firm's optimistic stance on the stock, coupled with a High Risk rating that acknowledges the potential volatility associated with the company's shares.
In other recent news, UP Fintech Holding Limited, known for its Tiger Brokers online brokerage platform, has expanded its services in Hong Kong. The company has been granted a Type 9 license by Hong Kong's Securities and Futures Commission, allowing it to offer asset management services. This move is part of UP Fintech's strategy to cater to global investors through its proprietary mobile and online trading platform.
In terms of earnings, UP Fintech reported a significant increase in both fourth quarter and full-year earnings for 2023. The company's fourth quarter total revenue was $70 million, marking a 9.6% rise from the same period in the previous year.
For the full year, UP Fintech achieved $273 million in total revenue, which is a 21% growth from 2022. The full year saw a net profit of $32.6 million, while the non-GAAP net profit soared to a record $42.7 million.
Looking ahead, UP Fintech plans to add 150,000 new funded accounts in 2024, focusing on expanding in Singapore, Southeast Asia, Australia, New Zealand, the United States, and Hong Kong. The company also intends to enhance its R&D, introduce more product features, and improve profitability. These are the recent developments within UP Fintech Holding Limited.
InvestingPro Insights
UP Fintech Holding Ltd. (NASDAQ: TIGR), commonly known as Tiger Broker, is showing encouraging signs in its financial metrics that complement the positive sentiment from Citi's revised price target.
According to InvestingPro data, the company boasts a healthy market capitalization of $652.88M USD and an attractive Price/Earnings (P/E) ratio, which stands at 19.83 on an adjusted basis for the last twelve months as of Q4 2023. These figures suggest a company that is valued reasonably relative to its earnings. Moreover, the gross profit margin is particularly robust at 82.3%, indicating efficient management and a strong competitive position in its market.
InvestingPro Tips highlight that analysts predict UP Fintech will be profitable this year, a projection that aligns with the company's recent profitable performance over the last twelve months. It's also worth noting that the company currently does not pay a dividend, which could be a factor for investors seeking income from their investments. For those interested in a deeper dive, there are additional InvestingPro Tips available, which could provide further insight into the company's prospects. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable insights.
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