Citi upgraded Futu Holdings (FUTU) to Buy/High Risk from Neutral/High Risk after the online brokerage’s stock slid 8% since it posted Q3 results. Meanwhile, Citi expects robust client asset inflow and trading volume will continue to support Futu’s brokerage commission and interest income.
In addition, the company’s US$800M stock buyback programs should also support the stock.
Futu (FUTU) stock rose 3.0% in Friday morning trading.
“After the recent share price correction (–8% since 3Q25 results on 18 November and –23% MTD), Futu is trading at 13.6x FY26E PE with FY26E ROE of 26.9% and shareholder capital return of 25%, which we see as an attractive risk-reward profile,” analyst Judy Zhang wrote in a note to clients.
Management expects stable Q/Q client asset balance and sequential growth in client asset inflow to offset the mark-to-market loss quarter-to-date, the analyst noted. Trading volume, too, is expected to record sequential growth.
Citi’s Buy rating on Futu (FUTU) aligns with the SA Quant rating and average Wall Street rating, both at Strong Buy, and contrasts with the average SA Analyst rating of Hold.