Nu Holdings shares offer 40% upside with strong earnings and U.S. bank expansion potential.

Nu Holdings (NU) shares have dropped 23% year-to-date due to Brazil's economic slowdown and rising loan losses, but the company posted record 2025 earnings with 45.6% net income growth and 131 million customers. The stock is rated a buy with a 90% confidence level and a price target of $17.97, implying 40% upside from the current $12.82 price. Key growth drivers include conditional approval for a U.S. national bank and a partnership with Amazon Brazil. Risks include rising credit losses and macroeconomic volatility in Brazil. The upcoming Q1 2026 earnings report is a critical catalyst for confirming growth and credit stability.