Goldman Sachs on Wednesday upgraded XP Inc. (NASDAQ:XP) to Buy from Neutral, and lifted its price target for the stock to $23 from $17.
A financial professional examining price changes on a stock broker’s trading floor.
The firm cited the Brazilian company’s robust operating leverage, revenue mix, and upside potential, which could come into use if interest rates were to decline faster than expected.
The bank also highlighted XP Inc.’s reduced reliance on equity market performance and steady fixed income revenue growth, which puts it on track for consistent double-digit revenue growth.
Moreover, Goldman Sachs noted XP Inc.’s solid capital position, which should allow for further buybacks and dividends ahead in the year.
XP Inc. gained 1.29% on Wednesday to close at $19.58 per share, taking the year-to-date returns to over 65%.
The company provides financial products and services in Brazil. It owns several platforms, including XP, Rico, Clear, Infomoney, XPeed, and IM+.
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