Goldman Sachs has upgraded its recommendation on Futu Holdings Limited (NASDAQ:FUTU) from Neutral to Buy and increased the firm’s price objective to $213.39 from $157.85. The change aligns with a strong consensus among analysts reflected in InvestingPro data, which shows an aggregate recommendation of 1.3 - a strong buy - and price targets spanning $157.34 to $299.56.
The upgrade from Goldman Sachs rests primarily on the bank’s forecasts for client growth. Goldman projects that Futu will add 802,000 new paying clients in 2026 and a further 659,000 in 2027. Those additions correspond to growth rates of 24% and 16% relative to the existing client base, according to Goldman’s analysis. The firm expects Futu to sustain growth during favorable market environments and to capture accelerated client acquisition during IPO upcycles.
Goldman Sachs underscored the company’s structural advantages. The bank pointed to Futu’s competitive product and service offering as a driver of high client retention. In contrast to traditional financial institutions, Futu operates as a low-fee, convenience-focused discount broker with a lean operating model. This operational efficiency is reflected in a gross profit margin reported at 93.92%, based on InvestingPro data.
Interest income makes up a substantial portion of Futu’s revenue mix - approximately 40% - but Goldman Sachs judges that potential Federal Reserve rate cuts would have a limited impact on profitability. The firm estimates that a 50 basis point reduction in rates could lower 2026 revenue by about HK$435 million, which equals roughly 2% of total revenue under their assumptions.
Valuation metrics cited by Goldman Sachs support the upgrade in the bank’s view. Futu trades with a price-to-earnings ratio of 18.19 and a price/earnings-to-growth (PEG) ratio of 0.16, figures the bank interprets as indicating an attractive valuation relative to the company’s anticipated growth trajectory.
Goldman Sachs also called out digital assets as a likely future growth contributor. While Futu already offers retail crypto trading, the bank anticipates that greater client acquisition and incremental assets under management could stem from expanding crypto trading services, helping to diversify revenue over time.
Market metrics cited in the note show a market capitalization of $22.63 billion and a one-year price return of 68.2%, underlining recent investor interest. InvestingPro data additionally shows Futu delivered strong recent top-line performance, with revenue growth of 87.15% over the last twelve months and analysts expecting that momentum to continue.
Futu’s most recent quarterly results were similarly strong. For the third quarter of 2025 the company reported earnings per share of 22.8 HKD, versus an analyst forecast of 18 HKD, representing a 26.67% positive surprise. Total revenue for the quarter reached 6.4 billion HKD, surpassing the anticipated 4.36 billion HKD by 46.79%. Despite the upside in results, the stock experienced a slight pre-market decline following the announcement.
Investors seeking further analysis are referenced to InvestingPro’s Pro Research Reports coverage of more than 1,400 US equities for deeper data and visualized intelligence, as noted in the original reporting.
Contextual note - The upgrade and the supporting forecasts emphasize client growth assumptions, high gross profitability and a valuation that Goldman Sachs views as favorable. The company’s exposure to interest income and its nascent digital-asset business were both highlighted as material considerations in the firm’s assessment.