William Blair analyst Christopher Kennedy has maintained their bullish stance on EVTC stock, giving a Buy rating today.
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Christopher Kennedy has given his Buy rating due to a combination of factors surrounding Evertec’s strategic acquisition of Tecnobank. This acquisition aligns with Evertec’s ongoing strategy to diversify its business operations beyond Puerto Rico, tapping into the growing Brazilian market. The investment in Tecnobank, a cloud-based platform that facilitates vehicle financing contract registration, is expected to unlock significant cross-selling opportunities, leveraging Evertec’s existing relationships with over 250 banks in Brazil.
Moreover, the acquisition is seen as a strategic move to capitalize on the increasing digital transformation within the auto financing market in Brazil. Tecnobank’s growth trajectory, with a 9.6% compound annual revenue increase since 2018, and its correlation with the rising new vehicle sales in Brazil, further supports the potential for strong financial returns. This strategic expansion and the promising market conditions contribute to Kennedy’s optimistic outlook and the Buy rating for Evertec’s stock.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $42.00 price target.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EVTC in relation to earlier this year.