Goldman Sachs predicts Nu Holdings could rise 60-70% after US launch

Goldman Sachs is betting big on Nubank’s American ambitions. The investment bank has maintained its Buy rating on Nu Holdings (NYSE: NU) with a price target of $22, implying roughly 60-70% upside from the stock’s recent trading range around $13.50 to $14.50.

What Nubank is actually offering Americans

On September 10, Nubank rolled out a suite of consumer banking products in the US. The lineup includes a high-yield savings account with a 3.50% annual percentage yield, a no-fee Mastercard credit card, and remittance services.

The launch was facilitated through a partnership with Lead Bank, a Kansas City-based institution. Nubank received conditional approval from the Office of the Comptroller of the Currency back in January for a US national bank charter, with full approval anticipated by 2027.

The strategic playbook is clear: go after consumers who feel underserved by incumbents. In the US, that means focusing on Hispanic communities and younger demographics.

The stablecoin angle is real

Perhaps the most interesting piece of Nubank’s US expansion is Nu Global, a multi-currency account feature that uses stablecoins, specifically USDC and EURC, to power cross-border transactions across more than 35 countries.

The costs of going north

Goldman Sachs flagged that Nubank’s US expansion is expected to hit its consolidated efficiency ratio by approximately 100 basis points. CEO David Vélez has projected the cost impact at roughly $200 to $300 million.

What to watch from here

The timeline for Nubank’s full US bank charter is the single most important catalyst on the horizon. Conditional OCC approval was granted in January, with full approval expected by 2027, at which point Nubank would be able to hold deposits directly without relying on a partner bank.