XP Inc. (NASDAQ:XP) saw its share price climb by 49.86 percent week-on-week—topping the US market gainers—as investors cheered Senator Flavio Bolsonaro’s unexpected win in the first round of general elections in Brazil.
Bolsonaro, eldest son of former right-wing President Jair Bolsonaro, won 47 percent of the votes cast on Sunday and will face leftist incumbent president Luiz Inácio Lula da Silva, who received 45 percent of the votes cast. The two will face each other again in a runoff on October 25.
As compared with da Silva, investor sentiment was bolstered by Bolsonaro’s more pro-business stance, with markets expecting a business-friendly environment under his term if he wins the presidential election.
Elections aside, XP Inc. jumped to a fresh four-year high of $32.29 on Friday before paring gains to finish the session up 6.67 percent at $32.22 apiece.
Photo by Mizuno K on Pexels
UBS Issues Buy Call, Hikes PT
Investment firm UBS on Thursday issued a buy recommendation on shares of XP Inc., alongside a price target of $37, marking a 14.8 percent upside potential from its latest closing price.
The price target also represented a 48 percent increase from its previous fair value assessment of $25.
JPMorgan Bullish on Brazilian Stocks
The overall rally also spilled over to other Brazilian equities, namely Banco Bradesco, PagSeguro Digital, and StoneCo Ltd., among others, supported by JPMorgan’s rating upgrade of Brazilian stocks to “overweight”—a reversal of its downgrade to neutral in August.
The investment firm said that the rerating was based on expectations of reduced political uncertainties, that Brazilian equities could gain between 12 and 20 percent, and that the country’s upside potential exceeds what any other Latin American market can offer.
It noted that potential further reductions in the benchmark Selic rates could support a stronger Brazilian real and provide an additional boost to equities.
Q3 Earnings on the Lookout
Based on its historical earnings results, XP Inc. is set to release the results of its financial and operating highlights for the third quarter of the year in the week of November 16 to 20, 2026, an upcoming catalyst that could provide further momentum for its stock if the company reports continued growth in profitability and revenue.
In the second quarter of the year, the company saw its net income grow by 5 percent to R$1.384 billion from R$1.321 billion in the same period last year, while net revenues increased by 9 percent to R$4.884 billion from R$4.499 billion year-on-year.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
