Goldman Sachs is projecting significant growth for Nu Holdings (NU), the digital banking giant, as it makes its debut in the U.S. market. The investment firm has initiated coverage with a 'buy' rating and set a price target of $23 per share, indicating a potential upside of approximately 69% from recent trading levels.
Analysts at Goldman Sachs highlight the vast potential of the U.S. consumer lending market, estimated at $1.5 trillion – seven times larger than Brazil's. They believe Nu's "ultra-low cost digital approach with a strong consumer experience" positions it well for success in this highly competitive landscape.
"While the US banking market is one of the most competitive in the world, it has an addressable consumer lending market of $1.5tn, 7 [times] larger than Brazil," noted analyst Tito Labarta in a client note. "We think NU's ultra-low cost digital approach with a strong consumer experience could allow it to successfully enter the market."
Goldman Sachs estimates that Nu could boost its earnings by roughly $500 million for every 2% increase in U.S. market share. Key to this expansion will be the bank's ability to manage costs, particularly high marketing expenditures. However, Labarta pointed out that Nu has a proven track record of "consistently demonstrated an ability to grow without overspending."
The bullish outlook from Goldman Sachs aligns with the broader sentiment on Wall Street. Data from LSEG shows that out of 18 analysts covering Nu Holdings, 15 recommend a 'buy' or 'strong buy' rating. Despite shares being down nearly 19% year-to-date in 2026, the stock showed resilience, trading around flat on Thursday while the broader market faced challenges.
