Stock Markets
Morgan Stanley maintains Equalweight rating on Futu Holdings after bank stake buy
On Tuesday, Morgan Stanley maintained its Equalweight rating on shares of Futu Holdings Limited (NASDAQ:), with a steady price target of $70.00. The firm’s stance comes after the recent announcement made by Futu on Sunday, disclosing the acquisition of a 44.1% interest in Airstar Bank for HK$440 million, positioning Futu as the second-largest shareholder of the virtual bank, following Xiaomi (OTC:) Group.
The investment aligns with Futu’s strategic vision of enhancing its wealth management offerings to increase client engagement. It is anticipated to create additional cross-selling opportunities between Airstar Bank and Futu’s brokerage operations, improve the utilization of Futu’s extensive client base, and streamline client asset transfers over time.
Despite the valuation of the deal being at a premium, with Airstar Bank estimated at HK$997 million compared to its FY23 equity of HK$557 million, the impact on Futu’s profit and loss statement is expected to be minimal in the near term. This is attributed to Airstar Bank’s relatively modest asset size of HK$2.3 billion and a net loss of approximately HK$200 million for FY23.
Looking ahead, Morgan Stanley suggests that other initiatives from Futu, such as the anticipated launch of cryptocurrency trading services in the coming months, are likely to be more significant drivers for the company’s performance in the near future. These developments are keenly awaited as potential catalysts for Futu’s growth trajectory.
In other recent news, Futu Holdings Limited has been experiencing robust growth in its client base. Analysts from Morgan Stanley and BofA Securities have upgraded their price targets for the company’s shares due to this impressive client growth. The company’s first quarter of 2024 was marked by strong performance, with approximately 177,000 new paying clients added.
Futu Holdings has also seen a significant increase in its revenue, with a 9.2% quarter-over-quarter growth reported for the first quarter of 2024. Despite a slight year-over-year decline in net profit, the company exceeded BofA Securities’ expectations by 3%.
The company’s expansion into new markets, particularly Japan and Malaysia, has contributed to its client acquisition momentum. Futu Holdings has raised its full-year guidance for new paying clients to 400,000, reflecting the company’s optimism about its growth trajectory.
In addition to client growth, Futu Holdings has reported a 24% year-over-year increase in paying clients and a rebound in trading volumes and client assets. However, it’s worth noting that the company has expressed a conservative stance regarding profitability in the Japanese and Malaysian markets. These are some of the recent developments in Futu Holdings Limited.
InvestingPro Insights
Following Morgan Stanley’s assessment of Futu Holdings Limited (NASDAQ:FUTU), InvestingPro data and tips offer additional perspectives on the company’s financial health and market performance. With a robust market capitalization of $10.2 billion and a Price/Earnings (P/E) Ratio of 19.26, Futu demonstrates a balance between its market value and earnings potential.
The company’s revenue growth over the last twelve months stands at a solid 11.37%, highlighting its ability to expand its financial base in a competitive sector. Moreover, the impressive Gross Profit Margin of 93.09% for the same period indicates Futu’s efficiency in managing its cost of goods sold and maintaining profitability.
An InvestingPro Tip that aligns with the article’s narrative is the strong return over the last three months, with a 25.95% increase in price total return, reflecting investor confidence and market momentum. Additionally, the company’s lack of dividend payments suggests a reinvestment strategy aimed at fueling further growth, which may appeal to growth-oriented investors.
For readers seeking a deeper dive into Futu’s investment potential, InvestingPro offers additional tips, including the company’s high return over the last decade and strong return over the last five years. To access these insights and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. With several more InvestingPro Tips available, investors can gain a comprehensive understanding of Futu’s market position and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Stock Markets
BioAge Labs (BIOA) Azelaprag Trial Halt Raises Questions About Pre-IPO Disclosures – Hagens Berman
San Francisco, California–(Newsfile Corp. – December 25, 2024) – On December 9, 2024, just months after conducting an initial public offering in September 2024, BioAge Labs, Inc. (NASDAQ: BIOA) made the startling announcement that it was discontinuing a Phase 2 study for its lead product, azelaprag, intended to treat metabolic diseases such as obesity.
Hagens Berman has opened an investigation and urges investors in BioAge who purchased shares in the company’s IPO or on the open market and suffered substantial losses to submit your losses now.
Visit: www.hbsslaw.com/investor-fraud/bioa
Contact the Firm Now: BIOA@hbsslaw.com
844-916-0895
BioAge Labs, Inc. (BIOA) Investigation:
The investigation is focused on the propriety of BioAge’s disclosures about the safety data and other matters related to azelaprag, which the company said in its IPO documents has been “well-tolerated in 265 individuals across eight Phase 1 clinical trials.”
BioAge’s disclosures came into question after the market closed on December 6, 2024, when the company announced the discontinuation of the STRIDES Phase 2 clinical trial evaluating azelaprag in combination with tirzepatide for the treatment of obesity. BioAge said that liver transaminitis was observed in patients receiving azelaprag.
This news drove the price of BioAge shares down almost 80% on December 9, 2024.
“We’re focused on whether BioAge was transparent to investors about the azelaprag safety profile before the December 6 announcement,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in BioAge and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the BioAge investigation, read more »
Whistleblowers: Persons with non-public information regarding BioAge should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email BIOA@hbsslaw.com.
# # #
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/235182
Stock Markets
Celsius Holdings (CELH) Hit with Investor Class Action Amid Accusations of Oversold Inventory to Pepsi- Hagens Berman
CELH Investors with Losses Encouraged to Contact the Firm
San Francisco, California–(Newsfile Corp. – December 25, 2024) – Celsius Holdings (NASDAQ:), Inc. (NASDAQ: CELH) and certain of its C-Suite officers are embroiled in a securities class action lawsuit, claiming they misrepresented and concealed crucial information about the company’s financial performance, especially concerning its key customer, PepsiCo (NASDAQ:).
Hagens Berman is investigating the allegations and urges investors in Celsius who purchased shares and suffered substantial losses to submit your losses now.
Class Period: Feb. 29, 2024 – Sept. 4, 2024
Lead Plaintiff Deadline: Jan. 21, 2025
Visit: www.hbsslaw.com/investor-fraud/celh
Contact the Firm Now: CELH@hbsslaw.com
844-916-0895
Celsius Holdings, Inc. (CELH) Securities Class Action (WA:):
The lawsuit alleges that during the Class Period, Celsius failed to disclose to investors several critical points:
- Oversold Inventory: Celsius significantly oversold inventory to Pepsi beyond demand, leading to a potential drastic reduction in future purchases.
- Declining Sales: As Pepsi depleted its overstock, Celsius’ sales were projected to decline, impacting its financial health and outlook.
- Unsustainable Sales Rates: The sales rates to Pepsi were unsustainable and created a misleading impression of the company’s performance.
- Misleading Metrics: Consequently, Celsius’ business metrics and financial prospects were overstated
The situation came to light on May 28, 2024, when Celsius’ stock price plummeted nearly 13% following reports from Nielsen indicating slowed sales growth. Analysts highlighted the possibility of significantly reduced sales as Pepsi cut back its inventory.
The stock took another hit on September 4, 2024, dropping over 11% after a company presentation revealed a shortfall of $100 million to $120 million in Pepsi orders compared to the previous year. It was also disclosed that Pepsi had held several million excess cases over the last 18 months.
These revelations have led shareholder rights firm Hagens Berman to investigate the allegations.
“We’re investigating whether Celsius deliberately painted an overly optimistic picture of its relationship with Pepsi, misleading investors about the true state of its financial health and sales sustainability,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Celsius and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Celsius case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Celsius Holdings should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CELH@hbsslaw.com.
# # #
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/235180
By Ank Kuipers
PARAMARIBO (Reuters) -Suriname’s fugitive former President Desi Bouterse has died aged 79, the country’s government said on Wednesday, almost a year after he fled authorities to avoid jail following his conviction over the murder of 15 political activists in 1982.
“The government has been informed through the family and its own investigations of the passing of Mr. D. Bouterse, ex-President of the Republic of Suriname,” Foreign Minister Albert Ramdin told Reuters.
The former leader died on Tuesday, the government said, without confirming where, or even in which country. Last week Surinamese authorities raided his home – where supporters gathered to pay their respects on Wednesday morning – but did not find him.
Surinamese President Chan Santokhi, who investigated the case as a police commissioner and later as justice minister, expressed condolences to Bouterse’s family and urged calm in a statement.
“In the spirit of the holiday season and year-end, the president calls on all to remain dignified and calm, maintain peace and order and engage in prayer in the spirit of these special days,” the statement said.
Bouterse dominated politics in the tiny South American country for decades, leading a coup in 1980 and finally leaving office in 2020.
In 2019 he and six others were convicted for their role in the 1982 murders of 15 leading government critics – including lawyers, journalists, union leaders, soldiers and university professors – for which Bouterse received a 20-year prison sentence.
Bouterse had claimed the murdered men were connected to a planned invasion of the former Dutch colony.
Following years of legal back and forth, Bouterse was ordered to report to prison in January but he did not show up on the appointed date.
Though Bouterse avoided prison by going on the run, Reed Brody, a U.S. war crimes prosecutor who monitored the case for the International Commission of Jurists, said justice had caught up with the convicted former president before he died.
“Thanks to the victims’ relatives and their supporters who never gave up, Bouterse will go down in history as a convicted murderer,” Brody said.
The former president’s family will make a statement later on Wednesday, members of his political party told journalists.
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