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XP Inc. upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs analyst Tito Labarta upgraded XP Inc. (XP) to Buy from Neutral with a price target of $23, up from $17. The firm sees the company well positioned to benefit from operating leverage, with possible upside risks if revenue growth accelerates further. XP’s “healthy” capital ratio should also be supportive for dividends and buybacks, the analyst tells investors in a research note. Goldman increased the price target to reflect higher earnings estimates, a higher pay-out ratio and lower cost of equity.

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