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Nu Holdings Ltd. (NYSE:NU) is one of the best NYSE stocks to buy for long-term investment. Nu Holdings Ltd. (NYSE:NU) was downgraded to Neutral from Positive by Susquehanna on June 3, with the firm bringing the price target on the stock down to $13 from $18. It told investors in a research note that the company’s operating margins fell 760 basis points to 19.2% in fiscal Q1 because of its credit card push in Brazil and regional expansion into Mexico.

Susquehanna believes that the company’s global expansion is likely to be expedited by the hiring of Visa’s North America CEO, Rob Livingston, and the departure of Brazil-based CFO Guilherme Lago. It added that Nu Holdings Ltd. (NYSE:NU) is again in a heightened investment cycle, and that downgrades the shares pending better visibility. The company’s margins have been under pressure from several factors that are unlikely to ease in the near term, according to the firm.

In another development, BofA downgraded Nu Holdings Ltd. (NYSE:NU) to Underperform from Neutral on June 2, bringing the price target on the stock down to $10 from $16.

Headquartered in George Town, Cayman Islands, Nu Holdings Ltd. (NYSE:NU) is a provider of digital banking services.

While we acknowledge the potential of NU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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