Itau BBA downgraded Nu Holdings (NYSE:NU) from "Outperform" to "Market Perform." The firm also reduced Nu's price target from $20 to $18. This decision reflects growing medium-term uncertainty in Brazil's economic landscape. This comes despite Nu's solid current and long-term prospects.
The downgrade is driven by concerns about a more challenging consumer environment in Brazil. The analyst cited diminishing fiscal and social stimulus. Inflationary pressures from higher commodity prices also pose potential headwinds. Uncertainty surrounds potential government measures targeting high-cost credit products. These measures could affect Nu's business. They could also slow Nu's earnings momentum in 2027.