Contractual ChallengesThese pressures are weighing, e.g., $18 million on BPOP alone into 2026.
Margin CompressionThe downgrade of EVTC was anchored on prospective margin compression primarily from the downside leverage from the LatAm expansion and the BPOP renewal.
Valuation ConcernsEvertec is trading at a discount to its 5-year average, suggesting that the current valuation is fair and accounts for potential downsides.