XP shares could benefit from cost cutting and an easing cycle: BofA

Investing.com -- Xp Inc (NASDAQ: XP), the Brazilian financial firm, was falling after an upgrade by analysts at BofA Securities.

The firm upgraded the stock to buy from neutral, and raised its price target to $29 from $16. Shares fell 2.4% but are up 56% so far this year.

XP is the largest independent broker in Brazil. The analysts said in a research note that XP’s earnings are “poised to benefit from an easing cycle, while trading multiples have room to re-rate higher.”

The company is also working on cost control efforts that should help boost its margins. The new price target “reflects our new earnings estimates and a target P/E of 17x (from 13x) on ’24E EPS (from ’23E),” the analysts said.

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