Inter & Company Inc.: Sell Rating Due to Stagnant Revenue Growth and Limited Monetization Potential

Inter & Company Incorporation Class A (INTR – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Jorge Kuri from Morgan Stanley reiterated a Sell rating on the stock and has a $4.00 price target.

Jorge Kuri has given his Sell rating due to a combination of factors impacting Inter & Company Incorporation Class A. Despite improvements in cost efficiency, the company struggles with effectively monetizing its customer base. The reliance on secured lending and low-yield transactional products suggests a lack of risk appetite and technological capabilities, which limits the potential for stronger customer monetization.
Additionally, Inter has shown limited progress in credit penetration and cross-selling, particularly in unsecured loans. The company’s average revenue per active customer has stagnated, and its return on equity (ROE) remains below the cost of equity, with little room for expansion beyond the current level. These factors contribute to a bearish outlook, as the company’s financial performance is not expected to meet management’s ambitious targets.