XP, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Gustavo Schroden from Citi maintained a Buy rating on the stock and has a $22.00 price target.
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Gustavo Schroden has given his Buy rating due to a combination of factors that highlight XP’s potential for growth and profitability. Despite a weaker second quarter in 2025, the management remains optimistic about achieving a minimum 10% revenue growth for the year and meeting its guidance for 2026. The company expects retail net inflows of approximately R$20 billion per quarter, which is a positive indicator of sustained investor interest and potential revenue growth.
Additionally, XP’s net income growth has outpaced its risk-weighted assets, suggesting a strong financial position that could be further leveraged in the coming quarters. Although there are concerns about increased SG&A expenses and potential tax impacts, the management’s commitment to maintaining a payout of at least 50% for 2025 and 2026 provides confidence in the company’s ability to deliver shareholder value. Furthermore, the expected share price return of 25.7% underscores the attractive investment opportunity that XP presents.
According to TipRanks, Schroden is ranked #4463 out of 9921 analysts.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $26.00 price target.