XP Inc. (XP) Gets Price Target Boost at BofA Despite Neutral Outlook

XP Inc. (NASDAQ:XP) is among the under-the-radar dividend stocks benefiting from AI. Analysts at BofA have reiterated their ‘Neutral’ rating on XP Inc. (NASDAQ:XP), while raising the price target to $22 from $19, reflecting a potential upside of nearly 17%. In addition to this, the firm revised its revenue growth guidance for the company, while maintaining its earnings estimates unchanged. The price upswing is driven by a shift in its valuation basis from year-end 2025 to 2026.

XP Inc. (NASDAQ:XP) is one of the companies heavily investing in technology and marketing. What most people like about the company is its focus on improving business efficiency through advancements in the tech platform, product offerings, and sales team. The company’s year-to-date return, surpassing the market average by an impressive 44.70%, is a testament to its growing popularity.

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The company has created its own models that help channel its workforce, streamline operations, and enhance the level of service. As stated by Thiago Maffra, the Chief Executive Officer of XP Inc. (NASDAQ:XP),

We have been investing a lot in increasing the level of service, the way of serving our clients through financial planning, through wealth planning, succession, tax planning, and so on.

XP Inc. (NASDAQ:XP), headquartered in Grand Cayman, Cayman Islands, is a provider of financial products and services in Brazil. Founded in 2001, the company offers XP Platform, derivatives and synthetic instruments, credit cards, and life insurance products, among others.

While we acknowledge the potential of XP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XP and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.