XP, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Jorge Kuri from Morgan Stanley maintained a Buy rating on the stock and has a $26.00 price target.
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Jorge Kuri has given his Buy rating due to a combination of factors that highlight XP’s potential for growth and resilience. Despite a slight shortfall in revenue and net inflows compared to consensus expectations, XP’s net income showed a healthy increase both quarterly and annually, surpassing market estimates. This suggests a strong underlying performance that could support future growth.
Moreover, management’s commitment to achieving its revenue growth targets for 2025, coupled with the anticipated benefits from a possible rate-cutting cycle in the near future, reinforces the positive outlook. The valuation at 8.5 times the projected 2026 P/E ratio is also seen as attractive, providing a compelling reason for investors to remain optimistic about XP’s prospects.
According to TipRanks, Kuri is an analyst with an average return of -4.6% and a 40.35% success rate. Kuri covers the Financial sector, focusing on stocks such as Nu Holdings, XP, and Credicorp.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a $22.00 price target.