Jefferies reduced its price target on UP Fintech Holding Ltd. to $7.70 from $8.80 while maintaining a Buy rating on the shares. The adjustment follows the company’s second-quarter results, which showed revenue above market expectations but non-GAAP earnings below consensus.
UP Fintech reported total revenue of $182.27 million for the quarter, a 31.4% increase from the prior year and exceeding the estimated $150 million. Adjusted earnings came in at $0.23 per share, surpassing the projected $0.194 per share. The company’s revenue growth was driven by stronger commission and interest income, marking a return to profitability after a loss in the first quarter.
The earnings shortfall relative to expectations was attributed to higher-than-projected tax expenses. UP Fintech’s adjusted P/E ratio stands at 8.48, based on trailing 12-month revenue of $607 million, a 44% year-over-year increase.
Management noted that net asset outflows from mainland China retail clients occurred primarily between May 22 and June 12, with the pace of withdrawals easing in the second half of the year. Overseas client assets continued to expand quarter-over-quarter, reinforcing the company’s focus on global markets as its primary growth driver.
