New Street Research - Nubank (NU:US) NU US (Buy, TP: $8.5, +5%) Quick Take - Improving Yield mix driving strong beat

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New Street Research

Soomit Datta

EUR 9599.00 For Business Accounts Only

NU US (Buy, TP: $8.5, +5%) Quick Take - Improving Yield mix driving strong beat

NU reported strong Q2s after close. Revenue was 6% ahead, driven by better yields on solid loan book expansion. Pricing is stable, and rather the mix effect is favourable – a combination of rising Personal loan contribution, as well as a rising interest bearing component to Credit cards (PIX financing as opposed to revolving).

16/08/2023 1 EN

Underlying

Nubank

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New Street Research

Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
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Global healthcare thematic research

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Pan European Telecom Services and Cable

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Analysts

Soomit Datta

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NU US (Buy, TP: $8.5, +5%) Quick Take - Improving Yield mix driving strong beat

NU US (Neutral, TP: $13, -15%) Q3 24: NuCel the Telco disrupter, diversifying from lending

MELI US (Neutral, TP: $2,000, -5%) MercadoLibre Credit cards drive big NIMAL and group EBIT miss

TIM Brasil (Buy, TP: R$23, +43%) - Q3 24: In-line trends, Nubank and pricing concerns linger

Alphabet (GOOGL, Buy, $213 target) Forget Chrome, 3P payments are the heart of the issue

SATS: DBS merger breaks

3Q24 Broadband Trends: FWA capacity limits; FWA demand limits

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