XP Inc.: Strong Financial Performance and Growth Potential Justify Buy Rating

In a report released yesterday, Jorge Kuri from Morgan Stanley maintained a Buy rating on XP (XP – Research Report), with a price target of $24.00.

Jorge Kuri has given his Buy rating due to a combination of factors that highlight XP’s strong financial performance and growth potential. Despite some results coming in below consensus estimates, XP showed a solid year-over-year increase in recurring net income and net inflows, indicating robust business momentum. The company’s total assets under custody (AUC) also exceeded expectations, reflecting its ability to attract and retain client assets effectively.
Additionally, XP’s retail revenue demonstrated a notable year-over-year growth, driven by positive trends in fixed income and pension plans. While there were some quarterly declines in specific segments, the overall financial health and strategic positioning of XP suggest a promising outlook. These elements, combined with XP’s market position and growth trajectory, underpin Jorge Kuri’s confidence in recommending a Buy rating for the stock.

Kuri covers the Financial sector, focusing on stocks such as Nu Holdings, XP, and Inter & Company Incorporation Class A. According to TipRanks, Kuri has an average return of -0.2% and a 46.15% success rate on recommended stocks.