Shares of Nu Holdings Ltd. (NU) fell about 0.6% in premarket trading Monday to around $13.59 after Bloomberg reported that the Brazilian digital bank is exploring a potential acquisition of UK neobank Monzo. The report, citing people familiar with the matter, said the deal could value Monzo at between £8 billion and £10 billion, or roughly $10.8 billion to $13.5 billion.
Monzo, which was last valued at about £4.5 billion in a 2024 secondary share sale, has more than 16 million customers and would give Nu its first foothold in the UK and Europe. Needham noted that Monzo brings about 15.2 million loyal customers, £25.7 billion in total deposits and roughly £1.7 billion in annualized revenue. Sky News reported that Monzo is also weighing alternatives, including raising a fresh funding round or an IPO instead of selling to Nu.
Analyst reaction was divided. Rothschild Redburn reiterated a Buy rating and $19 price target, calling a Monzo deal Nu’s boldest step yet and arguing it would move Nu from a regional disruptor toward a global financial platform. Needham’s Kyle Peterson also maintained a $19 target and said the pullback created a meaningful buying opportunity, citing Monzo’s scale, licenses and brand recognition. Itau BBA took a more cautious view, downgrading Nu to Market Perform on fiscal uncertainty in Brazil and rising commodity prices. Northwise Project said Nu’s 2030 earnings could remain intact but warned of a possible stress scenario with a $4.3 billion loss in 2027 and a pause on stock buybacks.
Nu’s fundamentals remain strong: Q2 revenue rose 39% year over year to $5.88 billion, net income reached a record $1.06 billion, gross profit increased 43% to $2.44 billion, credit portfolio grew 37% to $39.4 billion, and deposits climbed 18% to $45.3 billion. NU shares are down more than 25% since the start of 2026, and the consensus rating is Moderate Buy with a mean price target of about $17.73.
