Credit Suisse Upgrades XP Inc. (XP) to Neutral, 'Better prospects ahead of the easing cycle'

Credit Suisse analyst Marcelo Telles upgraded XP Inc. (NASDAQ: XP) from Underperform to Neutral with a price target of $26.00 (from $15.00).

The analyst comments "Due to the monetary easing cycle ahead, a decompression in Ke, and better capital markets outlook, we raised XP to Neutral and TP to $26 (was $15). This relevant change is explained by: 150bps cut in rf-rate adding $5 to TP; $3 on better capital structure and higher LT-ROE at 25% (payout/buybacks); $1 from currency appreciation, $1 from EPS revision and $1 due to 6M-rollover. Our new TP offers 9% upside, valuing XP at 15.4x TP/E 2024. Risks to our rating and TP: worse macroeconomic conditions, changes in regulation, increased competition, share sale overhang (12% from Itau/Itausa)."

For an analyst ratings summary and ratings history on XP Inc. click here. For more ratings news on XP Inc. click here.

Shares of XP Inc. closed at $23.82 yesterday.

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