Analyst Nicholas Holowko of UBS maintained a Hold rating on Popular, with a price target of $127.00.
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Nicholas Holowko has given his Hold rating due to a combination of factors impacting Popular’s financial outlook. The company’s recent earnings per share exceeded expectations, primarily driven by strong performance in net interest income, fees, and controlled expenses. However, the increase in non-performing loans, attributed to two specific commercial loans, has raised concerns about credit quality, even though management has assured that these are isolated incidents.
Despite these credit challenges, the company’s net charge-offs are projected to remain within the expected range, and loan growth has shown positive momentum. Future estimates for 2026 and 2027 have been adjusted upwards due to anticipated lower expenses and increased fee income. Nevertheless, the uncertainty surrounding credit issues and the adjustments in projections have led to a neutral stance, justifying the Hold rating at this time.
According to TipRanks, Holowko is a 2-star analyst with an average return of 2.7% and a 45.00% success rate. Holowko covers the Financial sector, focusing on stocks such as Pinnacle Financial Partners, Popular, and Synovus.