Nubank shows strong growth and profitability with expansion potential in Latin America, rated 'buy' with $18 target.

Nubank, a founder-led digital bank in Latin America, demonstrates robust 45% FX-neutral revenue growth and 33% return on equity, driven by efficient customer acquisition and prudent risk management. Despite high market penetration in Brazil, growth opportunities remain strong in Mexico and Colombia, supporting ongoing expansion and margin improvements. The company’s undervaluation and large total addressable market in LATAM outweigh concerns about US expansion, leading to a reiterated 'buy' rating with a $18 price target for 2026.