Citi upgrades UP Fintech stock to Buy on crypto business potential

Citi upgraded UP Fintech Holding Ltd. (TIGR) to Buy, raising its price target to $14.00, citing improved market conditions, the potential boost from its cryptocurrency business launch, and robust financial performance including 61% year-over-year revenue growth and an 85% gross profit margin. This upgrade follows TIGR's strong Q1 2025 results, which surpassed analyst expectations with $0.20 adjusted EPS and $122.6 million in revenue (up 55.3% YOY), alongside significant customer growth and a 146.7% increase in net income. Citi also highlighted TIGR's attractive valuation compared to competitors and upwardly revised earnings forecasts, projecting a 24% CAGR for 2024-2027 earnings.

Analysis

UP Fintech Holding Ltd. (TIGR) received a significant vote of confidence from Citi, which upgraded the stock to Buy and raised its price target to $14.00, citing better-than-expected market conditions and the strategic launch of a cryptocurrency business. This positive outlook is substantiated by the company's impressive financial performance, including a 142% stock return over the past year, 61% year-over-year revenue growth, and a strong 85% gross profit margin. The upgrade is further supported by TIGR's first-quarter 2025 results, which saw net income surge 146.7% to $30.4 million on revenue of $122.6 million, a 55.3% increase from the prior year, despite a slight dip from the previous quarter. User metrics were equally robust, with a 23.5% increase in total funded accounts to 1.15 million and a 39.5% rise in total account balance to $45.9 billion. Citi's forward-looking analysis projects a 24% earnings CAGR for 2024-2027 and suggests TIGR's valuation remains attractive, noting it has not been re-rated as aggressively as competitor Futu, implying remaining upside potential.

Key Decisions for Investors

• Investors may view the Citi upgrade and raised price target as a strong bullish signal, supported by TIGR's robust year-over-year revenue and net income growth, significant customer acquisition, and a potentially attractive valuation compared to peers.
• The successful launch and client adoption of the new cryptocurrency business, along with sustained favorable conditions in U.S. and Hong Kong markets, are key catalysts to monitor for realizing the projected 24% earnings CAGR.
• While annual growth is strong, investors should note the slight sequential revenue decline in the first quarter and recognize that the company's performance remains sensitive to the volatility of its core equity markets.