William Blair analyst Christopher Kennedy has reiterated 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 including Evertec’s strong financial performance and strategic growth initiatives. The company’s recent quarterly results exceeded expectations, with revenue, adjusted EBITDA, and EPS all surpassing estimates. This broad-based outperformance led management to raise the midpoint of both revenue and adjusted EPS guidance, indicating confidence in future growth.
Additionally, Evertec’s enterprise value suggests potential for multiple expansion as the company shifts its business mix towards faster-growing markets outside of Puerto Rico. The acquisitions of Grandata and Nubity have bolstered growth, alongside strong organic growth across all segments. The company’s expansion in Latin America, particularly in Brazil through the acquisition of Sinqia, is expected to drive significant growth and improved margins in the coming years. Despite some macroeconomic uncertainties in Puerto Rico, the overall outlook remains positive, supporting the Buy rating.
In another report released today, KBW also maintained a Buy rating on the stock with a $44.00 price target.
Based on the recent corporate insider activity of 43 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.