Nu Holdings (NU) shares declined following a leadership transition and a Bank of America downgrade. BofA Securities lowered its rating to Underperform from Neutral. Analysts slashed the price target to $10 from $16.
The downgrade follows the announced departure of Chief Financial Officer Guilherme Lago. Lago will step down on July 13 after five years as CFO and seven years with the company. He will transition into a special advisor role.
Rob Livingston will succeed Lago as the new CFO. Livingston brings over 30 years of financial services experience from previous executive roles at Visa and Capital One.
The leadership change occurs as Nu navigates expansion into new markets. The company also faces a challenging credit environment in Brazil.