Futu Holdings Ltd. advanced 6.9% in pre-market U.S. trading on Thursday, lifting the stock to $117, after brokerage upgrades and strong second-quarter earnings forecasts overshadowed ongoing regulatory pressures.
Analysts anticipate earnings per share of HKD 23.05 for the quarter, a 26% year-over-year increase, alongside revenue of HKD 6.14 billion, up 16% from the same period last year. The projections follow a first-quarter report that showed funded accounts rising 34% year-over-year to 3.59 million and total client assets increasing 47%.
The stock’s move outpaced the 5.4% options-implied threshold, signaling broader investor confidence despite lingering headwinds. Futu’s shares remain well below the 52-week high of $202.53, reflecting the persistent gap between current valuations and peak levels.
Regulatory challenges continue to weigh on sentiment. China’s securities regulator issued an investigation notice and proposed penalty against the company earlier this year, while U.S. securities class action lawsuits related to the same issues remain pending. Despite these risks, brokerage firms maintain a broadly bullish stance, with a majority rating the stock as a "Strong Buy," though some have trimmed price targets in recent months due to regulatory uncertainty.
